Company: MCHB
Filing Date: 2025-08-07
Form Type: 8-K
Source: 0001518715-25-000114
Chunk: 3

Company: Mechanics Bancorp
Filing Date: 2025-08-07
Form: 8-K
Item: Item 8.01
Chunk 3
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 range of8.0x to12.0xHomeStreet’s estimated2029 earnings based on comparable companies and the professional judgment of KBW. Thisdividend discount model analysis resulted in a range of implied values per share of HomeStreet common stock of $3.59 to $9.22.

3. The disclosure under “ Opinion of HomeStreet’s Financial Advisor” on page 149 of the Proxy Statement/Prospectus/Consent Solicitation Statement is hereby supplemented by making the following changes to the fifth full paragraph:

Illustrative Pro Forma Combined Dividend Discount Model Analysis. KBW performed an illustrative dividend discount model analysis of the pro forma combined company. In this analysis, KBW used financial forecasts and projections relating to the earnings and assets of Mechanics provided by Mechanics management, financial forecasts and projections relating to the earnings and assets of

HomeStreet provided by HomeStreet management, and pro forma assumptions(including, without limitation, the cost savings expected to result from the merger as well as certain purchase accounting adjustments and other merger-related adjustments and restructuring charges assumed with respect thereto) provided by Mechanics management, and KBW assumed discount rates ranging from13.0% to15.0% based on the capital asset pricing model and the professional judgment of KBW. An illustrative range for the implied equity value of the pro forma combined company was derived by adding(i) the present value of the implied future excess capital available for dividends that the pro forma combined company had and could generate over the period from September30,2025 through December31,20302029 and(ii) the present value of the pro forma combined company’s implied terminal value at the end of such period of $5.3 billion as of December 31, 2029, in each case applying the pro forma assumptions. This analysis utilized the assumptions provided by HomeStreet management that the pro forma combined company would maintain a tangible common equity to tangible assets ratio of8.00% and would retain sufficient earnings to maintain that level. In calculating implied terminal values of the pro forma combined company, KBW applied a range of12.0x to16.0x the pro forma combined company’s estimated2030 earnings based on similar multiples for comparable companies and the professional judgment of KBW. This dividend discount model analysis resulted in an illustrative range of implied values for each share of the combined company that existing HomeStreet shareholders would have as a result of the merger of $15.07 to $19.91.

4. The disclosure under “ Opinion of HomeStreet’s