Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 307

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 307
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 net                   |     |      120,018 |     |          |
| Other assets                                   |     |      413,509 |     |          |
| Total assets acquired                          |     |  $​7,718,867 |     |          |
| Fair value of liabilities assumed:             |     |              |     |          |
| Deposits                                       |     | $(6,089,075) |     |          |
| FHLB advances                                  |     |   -1,005,485 |     |          |
| Subordinated Debt                              |     |      -70,178 |     |          |
| Other Borrowings                               |     |     -104,137 |     |          |
| Accrued interest payable and other liabilities |     |     -106,910 |     |          |
| Total liabilities assumed                      |     | $(7,375,785) |     |          |
| Net assets acquired                            |     |              |     |  343,082 |
| Preliminary pro forma bargain purchase gain    |     |              |     | $108,325 |

Note 4. Pro Forma Adjustments The following pro forma adjustments have been reflected in the unaudited pro forma combined condensed consolidated financial information. All taxable adjustments were calculated using an estimated 28% tax rate to arrive at deferred tax asset or liability adjustments. All adjustments are based on current assumptions and valuations, which are subject to change, and will be updated at the closing of the merger. As such, the financial statements of the resulting company will differ from the analysis presented above.

| (a) | Adjustments to HomeStreet’s held to maturity investments of $17 thousand. The fair value adjustments will be accreted through securities interest income over the estimated lives of the affected securities. The marked securities mature December 2025. |

| (b) | Adjustments to HomeStreet's loans held for investment, net of unrecognized deferred costs of $21.9 million, to reflect the estimated credit fair value adjustment of the loan held for investment portfolio of $81.4 million including the PCD gross up mark of $52.5 million and the estimated interest rate fair value adjustment of $260.2 million. The fair value adjustments will be accreted through loan interest income over the estimated lives of the affected loans. The weighted average remaining life of the loan portfolio was estimated at approximately seven years. |

| (c) | Elimination of HomeStreet’s existing allowance for credit losses on loans