Company: MCHB
Filing Date: 2025-08-07
Form Type: 8-K
Source: 0001518715-25-000114
Chunk: 2

Company: Mechanics Bancorp
Filing Date: 2025-08-07
Form: 8-K
Item: Item 8.01
Chunk 2
---
 rates for Mechanics provided by Mechanics management, and KBW assumed discount rates ranging from13.0% to15.0% 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 had and could generate over the period from December31,20252024 through December31,20292028 as a standalone company and(ii) the present value ofMechanics’ implied terminal value at the end of such period of $3.7 billion as of December 31, 2028. The analysis utilized the assumptions provided by HomeStreet management that Mechanics would maintain a tangible common equity to tangible assets ratio of8.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value ofMechanics, KBW applied a range of12.0x to16.0xMechanics’ estimated2029 earnings based on comparable companies and the professional judgment of KBW. This dividend discount model analysis resulted in a range of implied aggregate equity value of Mechanics of$2,606 million to$3,414 million.

2. The disclosure under “ Opinion of HomeStreet’s Financial Advisor” on page 149 of the Proxy Statement/Prospectus/Consent Solicitation Statement is hereby supplemented by making the following changes to the third full paragraph:

HomeStreet Dividend Discount Model Analysis. KBW performed a dividend discount model analysis of HomeStreetto estimate a range for the implied equity value of HomeStreet. In this analysis, KBW utilized financial forecasts and projections relating to the assets and earnings of HomeStreet provided by HomeStreet management, and KBW assumed discount rates ranging from14.0% to16.0% 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 HomeStreet had and could generate over the period from December31,20252024 through December31,20292028 as a standalone company and(ii) the present value ofHomeStreet’s implied terminal value at the end of such period of $392.0 million as of December 31, 2028. The analysis utilized the assumptions provided by HomeStreet management that HomeStreet would maintain a tangible common equity to tangible assets ratio of8.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value ofHomeStreet, KBW applied a