Company: MCHB
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001518715-25-000066
Chunk: 53

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 53
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 year. The production incentive is based on loan commitments originated by the Company’s commercial real estate (“CRE”) business unit, with a higher rate paid for Fannie Mae loan commitments. The profitability incentive is based on the income before tax of the CRE business unit, which includes corporate funding and overhead allocations. We are not disclosing the payout formulas used due to confidentiality and competitive concerns. The profitability incentive payout is subject to a discount based on levels of classified loans in the CRE portfolio. This incentive discount is intended to encourage loan production consistent with the safety and soundness of HomeStreet Bank.

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Performance Goals, Metrics and Results

The following table shows the performance measures, and 2024 results, for Mr. Endresen:

| Performance Measures            
 CRE Business Unit: Mr. Endresen |     | Target |     |               |     | Results |     |               |     | Results       
 (% of Target) |      |   |
|:--------------------------------|:----|:-------|:----|:--------------|:----|:--------|:----|:--------------|:----|:--------------|-----:|:--|
| Profitability(1)                |     | $      |     | 86.8 million  |     | $       |     | 86.4 million  |     |               | 99.6 | % |
| Loan Production(2)              |     | $      |     | 500.0 million |     | $       |     | 115.3 million |     |               | 23.1 | % |

(1) Profitability is a percentage of the pre-tax income (after determining allocation of consolidated Company overhead expenses) of the related business units. The Compensation Committee decided to exclude the impact of the sale of $990 million of multifamily loans in the fourth quarter of 2024 from the profitability measure as it was considered a non-core item.

(2) Loan production is total dollar amount of loan commitments in the current year for the related business unit. For commercial real estate loan production payouts vary by certain channels.

2024 Award Payouts

Based on the performance results described above, the following incentive awards were paid to Mr. Endresen:

|                     |     | Target 
 Payout 
 ($)    |         |     | Actual Payout |         |     |      |   |
| NEO                 |     | -$     |         |     | % of          
 Target        |         |     |