Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 71

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 71
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 | restrict the combined company from making strategic acquisitions or cause the combined company to make non-strategic divestitures; |

| • | restrict the combined company from paying dividends to its shareholders; |

| • | increase the combined company’s vulnerability to general economic and industry conditions; and |

| • | require a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on the combined company’s indebtedness, thereby reducing the combined company’s ability to use cash flows to fund its operations, capital expenditures and future business opportunities. |

HomeStreet and Mechanics will be subject to business uncertainties and contractual restrictions in the merger agreement while the merger is pending. Uncertainty about the effect of the merger on employees and customers may have an adverse effect on HomeStreet and Mechanics. These uncertainties may impair HomeStreet’s or Mechanics’ ability to attract, retain and motivate key personnel until the merger is completed, and could cause customers and others that deal with HomeStreet or Mechanics to seek to change existing business relationships with HomeStreet or Mechanics. Subject to certain exceptions, HomeStreet has agreed to operate its business in the ordinary course in all material respects and to refrain from taking certain actions, including actions that may adversely affect its ability to consummate the transactions

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contemplated by the merger agreement on a timely basis, without the consent of Mechanics. Subject to certain exceptions, Mechanics has agreed to refrain from taking certain actions, including actions that may adversely affect its ability to consummate the transactions contemplated by the merger agreement on a timely basis, without the consent of HomeStreet. These restrictions may prevent HomeStreet or Mechanics from pursuing attractive business opportunities that may arise prior to the completion of the merger. The announcement of the proposed merger could disrupt HomeStreet’s and Mechanics’ relationships with their employees, customers, suppliers, business partners and others, as well as their operating results and business generally. Whether or not the merger is ultimately consummated, as a result of uncertainty related to the proposed transactions, risks arising from the announcement of the merger on HomeStreet’s and Mechanics’ businesses include the following:

| • | their employees may experience uncertainty about their future roles, which might adversely affect HomeStreet’s and Mechanics’ ability to retain and hire key personnel and other employees; |

| • | customers, suppliers, business partners and other parties with which HomeStreet and Mechanics maintain business relationships may experience uncertainty about their future and seek alternative relationships with third parties, seek to alter their business relationships with HomeStreet and Mechanics or fail to extend existing relationships