Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 243

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 243
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975.51 |
| Total Assets                         |     |   $16,712 |     |   $16,943 |     |   $17,183 |     |   $17,951 |

| (1) | Reflects net income available to holders of Mechanics common stock. |

For purposes of extrapolating Mechanics’ financial results after 2028, Mechanics’ management provided KBW with, among other things, estimated long-term annual growth rates of 5.0% for Mechanics’ net income and earnings per share for the years 2029 and thereafter. Estimates Regarding Certain Pro Forma Financial Effects The following presents estimates regarding certain pro forma financial effects of the merger on the combined company that were prepared by Mechanics management, provided to and discussed with KBW by such management and used and relied upon by KBW, at the direction of HomeStreet management and with the consent of the HomeStreet board, in performing an illustrative dividend discount model analysis of the pro forma combined entity as part of the financial analyses performed in connection with KBW’s opinion, as further described in the section entitled “ The Merger—Opinion of HomeStreet’s Financial Advisor.” Such prospective financial information included, among other things, (i) annual pre-tax cost savings of $82 million, or 42.8% of HomeStreet’s 2025 estimated non-interest expense of $191.5 million (excluding the 2025 estimated amortization of intangible assets), phased in 100% for the three months ended December 31, 2025 and thereafter; (ii) 3.0% annual growth in cost savings base in 2027 and thereafter; (iii) $16 million after-tax annual impact related to a reduction in HomeStreet’s mortgage servicing and gain on sale income post-closing; and (iv) certain additional pro forma assumptions (including the purchase accounting and other merger-related adjustments). Such prospective financial information assumed a hypothetical September 30, 2025 closing date for the merger. See the section above entitled “ The Merger —Certain Unaudited Prospective Financial Information” for further information regarding the uncertainties underlying the pro forma financial effects of the merger as well as the sections entitled “ Cautionary Statement Regarding Forward-Looking Statements” and “ Risk Factors” for further information regarding the uncertainties and factors associated with realizing such pro forma financial effects in connection with the merger. Interests of HomeStreet’s Directors and Executive Officers in the Merger In considering the recommendation of the HomeStreet board of directors to vote for the