Company: MCHB
Filing Date: 2025-04-03
Form Type: 425
Source: 0001518715-25-000059
Chunk: 2

Company: Mechanics Bancorp
Filing Date: 2025-04-03
Form: 425
Chunk 2
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 the Voting Mechanics Common Stock, the “ Mechanics Common Stock ”), issued and outstanding immediately prior to the Effective Time, will be converted into the right to receive 330.1092 shares (the “ Non-Voting Exchange Ratio ”, and such shares collectively, with the Voting Merger Consideration, the “ Merger Consideration ”) of the Class B common stock, no par value of HomeStreet (the “ Class B HomeStreet Common Stock ”), to be created pursuant to the Articles Amendment (the common stock, no par value, of HomeStreet prior the effectiveness of the Articles Amendment, and following the effectiveness of the Articles Amendment, the Class A HomeStreet Common Stock and the Class B HomeStreet Common Stock, collectively, the “ HomeStreet Common Stock ”). The Merger is intended to qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended.

Certain Governance Matters

The Merger Agreement provides that, effective as of the Effective Time, the Board of Directors of HomeStreet will consist of the directors of Mechanics Bank as of immediately prior to the Effective Time and one member of the Board of Directors of HomeStreet as of immediately prior to the Effective Time selected by Mechanics Bank.

Treatment of HomeStreet Equity Awards

The Merger Agreement provides that, at the Effective Time, each outstanding restricted stock unit award granted under the Amended and Restated HomeStreet 2014 Equity Incentive Plan (such plan the “ Equity Incentive Plan ”, and each such restricted stock unit award, a “ HomeStreet RSU ”) will remain outstanding and be continued subject to the same terms and conditions (including vesting terms and terms with respect to dividend equivalents) as applied immediately prior to the Effective Time.

At the Effective Time, any vesting conditions applicable to each outstanding performance stock unit award granted under the Equity Incentive Plan (a “ HomeStreet PSU ”, and together with HomeStreet RSUs, the “ HomeStreet Equity Awards ”), whether vested or unvested, will automatically accelerate, be cancelled and entitle the holder to receive (1) a number of shares of Class A HomeStreet Common Stock equal to the number of shares of HomeStreet

Common Stock (immediately prior to the Effective Time) subject to such HomeStreet PSU based on target performance plus (2) an amount in cash equal to the amount of all dividends, if any, accrued but unpaid as of the Effective Time with respect to such HomeStreet PSU based on target