Company: MCHB
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001518715-25-000066
Chunk: 51

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 51
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1) For core ROAA, core ROATE and efficiency ratio, see Appendix A for reconciliations of these non-GAAP results of operations to the nearest comparable GAAP measures.

The Compensation Committee has the discretion to reduce or increase the payouts to the extent it determines appropriate to reflect the business environment and market conditions that may affect the Company’s financial and stock price performance. No such discretion was exercised by the Compensation Committee for payouts earned in 2024.

Individual Performance Goals.

Individual performance goals are established at the beginning of each plan year. An NEO’s individual goals may relate to responsibilities, projects and initiatives specific to the executive’s business or function that are not covered in the corporate performance measurements.

To assess individual performance against the goals, the Compensation Committee selected qualitative goals for the CEO tied to key strategic initiatives that are aligned with the Company’s 2024 – 2026 Strategic Plan as approved by the Board, as well as his responsibility in the areas of profitability, diversification, business growth and credit quality as such areas correlate to the 2024 – 2026 Strategic Plan. Similarly, the CEO recommended qualitative goals for Mr. Michel, the other non-commissioned NEO, based on the specific department and business goals that support the Company’s 2024 – 2026 Strategic Plan, which were adopted by the Compensation Committee.

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Mr. Mason, Chairman, President, Chief Executive Officer

| Strategic Qualitative Objective                             |     | Key Results                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| Merger Closing                                              |     | While the merger agreement was terminated in the fourth quarter of 2024 due to the inability to obtain regulatory approval for reasons unrelated to HomeStreet, HomeStreet received timely shareholder approval with a greater than 96% approval at our annual meeting. Additionally, at the time of the termination of the merger more than 95% of the integration work streams were in a “green” condition and expected to be timely completed. Mr. Mason negotiated a timely and effective termination of the merger agreement allowing HomeStreet to be reimbursed for certain merger transaction and integration expenses and move forward promptly on a new strategic plan in which Mr. Mason lead the timely marketing, negotiation and closing of a $990 million sale of multifamily loans. |
| Effective Leadership                                        |     | As a result of effective communication through the many merger related events (announcement, restructuring and termination) we did not experience any material, identifiable deposit runoff related to concerns about our solvency or our proposed or terminated merger