Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 220

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 220
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’ expectation that the combined company would have a strong capital position and excellent asset quality upon completion of the merger; |

| • | the Mechanics board of directors’ expectation that the required regulatory approvals could be obtained in a timely fashion; |

| • | the expected treatment of the merger as a “reorganization” within the meaning of Section 368(a) of the Code; |

| • | the retention of the Mechanics name for the surviving bank, Mechanics Bancorp for the combined company and the anticipated benefits to the combined enterprise arising from the goodwill and brand equity associated with the “Mechanics” name; |

| • | its review with Mechanics’ outside financial advisor, J.P. Morgan, of the financial position of Mechanics and HomeStreet, including the financial terms of the merger agreement and the other transactions contemplated by the merger agreement; and |

| • | its review with Mechanics’ outside legal advisor, Wachtell, Lipton, Rosen & Katz, of the terms of the merger agreement and the related transaction documents, including the representations and warranties, covenants, deal protection and termination provisions, tax treatment, closing conditions and post-closing governance arrangements. |

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The Mechanics board of directors also considered potential risks related to the merger but concluded that the anticipated benefits of the merger were likely to outweigh these risks. These potential risks include:

| • | the possibility of encountering difficulties in achieving anticipated synergies and cost savings in the amounts estimated or in the time frame contemplated; |

| • | the possibility of encountering difficulties in successfully integrating Mechanics’ and HomeStreet’s businesses, operations and workforces; |

| • | the risk of losing key Mechanics or HomeStreet employees during the pendency of the merger and thereafter; |

| • | the fixed exchange ratio component of the merger consideration, which will not adjust to compensate for potential declines in the stock price of HomeStreet prior to completion of the merger; |

| • | certain anticipated merger-related costs, which could also be higher than expected, and the fact that Mechanics expects to incur a number of non-recurring costs in connection with the merger even if the merger is not ultimately completed; |

| • | the possible diversion of management attention and resources from the operation of Mechanics’ business or other strategic opportunities towards the completion of the merger; |

| • | the fact that the merger agreement places certain restrictions on the conduct of Mechanics’ business prior to the completion of the merger, which could potentially delay or prevent Mechanics from undertaking business opportunities that might arise or certain other