Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 312

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 312
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 million and the estimated interest rate fair value adjustment of $260.2 million. The fair value adjustments will be accreted through loan interest income over the estimated lives of the affected loans. The weighted average remaining life of the loan portfolio was estimated at approximately seven years. |

| (c) | Elimination of HomeStreet’s existing allowance for credit losses on loans of $39.6 million and the recognition of an allowance at close for purchase credit deteriorated (“PCD”) loans of $52.5 million. In addition, an allowance for non-PCD loans of $28.9 million is reflected in the pro forma adjustments and represents the amount that will be recognized in the statement of income immediately following the close of the merger. |

| (d) | Adjustments to HomeStreet’s facilities of $6.0 million related to real property values. |

| (e) | Adjustment to eliminate HomeStreet’s core deposit intangibles of $6.7 million related to prior acquisitions and record an estimated core deposit intangible asset associated with the merger of $105.0 million. Core deposit intangible assets recorded as a result of the merger are expected to amortize using an accelerated |

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basis over an estimated life; 7 years for Demand Deposits, 5 years for Money Markets and 6 years for Savings. In addition, there is an adjustment for intangible assets related to the value of HomeStreet's delegated underwriting service (“DUS”) of $15.0 million.

| (f) | Adjustment to net deferred tax assets to reflect the effects of the acquisition accounting adjustments of $56.1 million, an elimination of HomeStreet’s valuation allowance on deferred tax assets of $52.6 million, a fair value adjustment of other real estate owned of $1.2 million. |

| (g) | Adjustments to HomeStreet’s Certificates of $73 thousand which will accrete over the estimated life of 1 year. |

| (h) | Adjustments to fair value HomeStreet’s FHLB advances of $5.5 million. |

| (i) | Adjustments to fair value subordinated debt of $29.6 million, long term debt $2.7 million and trust preferred debt $18.6 million. |

| (j) | Adjustment to eliminate HomeStreet’s reserve for unfunded commitments of $1.3 million and establish a new reserve of $3.5 million in addition to accrued transaction expenses net of tax of $