Company: MCHB
Filing Date: 2025-12-09
Form Type: 8-K
Source: 0001140361-25-045033
Chunk: 0

Company: Mechanics Bancorp
Filing Date: 2025-12-09
Form: 8-K
Item: Item 1.01
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Item 1.01.      Entry into a Material Definitive Agreement  

On December 3, 2025, Mechanics Bank (“ Mechanics Bank”), a wholly-owned subsidiary of Mechanics Bancorp (the “ Company”) and Fifth Third Bank, National Association
(“ Fifth Third”), a wholly-owned, indirect subsidiary of Fifth Third Bancorp, entered into an asset purchase agreement (the “ Agreement”), pursuant to and subject to the terms and conditions of which Mechanics Bank has agreed to sell, and Fifth Third
has agreed to purchase, Mechanics Bank’s Fannie Mae Delegated Underwriting and Servicing (“ DUS”) business line (the “ Transactions”) for cash consideration. The aggregate purchase price in the Transactions is approximately $130 million, subject to
adjustment for changes in the fair market value at closing of the DUS multifamily mortgage servicing rights being transferred in connection with the Transactions.

The closing of the Transactions is subject to customary closing conditions, including (a) approval of the Transactions by Fannie Mae and other regulatory approvals to
the extent applicable, (b) the absence of any order, injunction, decree or law making the Transactions illegal or otherwise preventing the consummation of the Transactions, (c) the accuracy of each party’s representations and warranties as of the
closing date, subject to materiality qualifications, and (d) each party’s performance of its covenants under the Agreement in all material respects.

The Agreement contains customary representations, warranties and covenants. The Agreement also includes customary termination provisions, including the right of either
Mechanics Bank or Fifth Third to terminate the Agreement if (a) the closing of the Transactions has not occurred by December 3, 2026, (b) there is a final, non-appealable order, injunction or decree enjoining or otherwise prohibiting the
consummation of the Transactions or (c) the other party has breached its representations, warranties or covenants in a way that prevents satisfaction of a closing condition, subject to a cure period. Mechanics Bank and Fifth Third have agreed to
use their respective reasonable best efforts to consummate the Transactions as promptly as practicable, subject to certain additional provisions and limitations set forth in the Agreement.

The foregoing description of the Agreement and the Transactions is not complete and is subject to and qualified in its entirety by reference to the full text of the
Agreement, a copy of which is attached to this Current Report on Form 8-K as Exhibit 2.1 and incorporated herein by reference.

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