Company: MCHB
Filing Date: 2025-05-09
Form Type: 425
Source: 0001518715-25-000085
Chunk: 21

Company: Mechanics Bancorp
Filing Date: 2025-05-09
Form: 425
Chunk 21
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 infrastructure, we don't have a ton of it today. I think the HomeStreet merger will be additive to us in this area. It's not a huge area focus, but it is important. It's a good product line and something that we're going to spend even more time with, but I envision it not being a tremendous change from what each bank is doing today. But Tony, go ahead. Tony Kallingal Yeah, I would add to that today predominantly we just do 504s and we work with CDCs. You all actually have a pretty good infrastructure around SBA and predominantly around 7A. So that's something we definitely do want to look at. So I think it's going to be during the integration period and whatnot is studying both sides and seeing what's the best solution for our customer, but the intent is to grow our SBA portfolio. C.J. Johnson

It's likely, hey, you've got infrastructure we don't, that's great, that's additive and we'll look to grow that modestly. That's not too crazy. Mark Mason Next question is around commercial lending in general. Maybe you could speak to how your commercial lending business is organized and what limitations or what size are your largest customers and how do you think of sizing, that kind of thing. C.J. Johnson I'll start and I'll let Tony comment or Scott comment. But we have very similar commercial verticals. We have a northern California team and a southern California team. We tend to be a bit real estate heavy, so a little more -- especially legacy Rabobank -- a little legacy commercial real estate. We've been over time shifting our mix away from commercial to real estate especially deals that don't have deposits with them to multifamily lending especially in southern California, which of course HomeStreet does a lot of as well. Where we feel like it's a fundamentally different asset class with a much better risk profile because it's apartments, people need places to live. California has a housing crisis candidly, so there's going to be lots of demand there for people to live, and we're very comfortable with that multifamily lending space. We've got a commercial banking franchise that's growing, but it's not too big in terms of CNI lending. And I think in general it's something where we're likely have a Director of Pacific Northwest, Director of Northern California, Director of Southern California, all rolling up through Tony. And, the mix of what we do will likely stay pretty similar