Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 71

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 71
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 This concentrated control could discourage a potential investor from seeking to acquire HomeStreet common stock and, as a result, might harm the market price of HomeStreet common stock. The holders of combined company common stock will not have the same protections afforded to stockholders of companies that are subject to all of the requirements of the Nasdaq Corporate Governance Rules.

**The combined company will meet the requirements to be a “controlled company” within the meaning of the rules of NASDAQ and the NYSE and, as a result, will qualify for, and intends to rely on, exemptions from certain corporate governance standards, which limit the presence of independent directors on its board of directors or board committees.**

Following the consummation of the merger, the Ford Entities will control approximately 77.7% of the voting power of the combined company. The combined company will therefore be a “controlled company” for purposes of NASDAQ Listing Rules and Section 303A of the NYSE Listed Company Manual and will qualify for, and intends to rely on, exemptions from certain governance standards that would otherwise be applicable.

Under NASDAQ Listing Rules and Section 303A of the NYSE Listed Company Manual, a company of which more than 50% of the voting power is held by an individual, a group or another company is a “controlled company” and is exempt from certain corporate governance requirements that would otherwise require the combined company to

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have: (i) a nominating committee comprised solely of independent directors or select or recommend director nominees by a majority of the independent directors and (ii) a compensation committee comprised solely of independent directors. Following the consummation of the merger, the combined company will continue to have an audit committee that is composed entirely of independent directors.

**Certain shareholders of the combined company will have registration rights, the exercise of which could adversely affect the trading price of combined company common stock.**

Concurrently with the effective time, the registration rights agreement among HomeStreet, Mechanics and certain key shareholders of Mechanics will become effective, pursuant to which HomeStreet will grant such key shareholder demand registration rights, shelf takedown rights and piggyback registration rights with respect to shares of combined company common stock such key shareholders acquire in the merger, in each case, subject to certain minimum and maximum thresholds and other customary limitations. The existence and potential or actual exercise of such rights, and the perception that a large number of shares will be publicly sold in the market, could adversely impact the trading price of the