Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 234

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 234
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 income after taxes and before extraordinary items, excluding gain on the sale of available for sale securities, amortization of intangibles, goodwill and nonrecurring items as defined by S&P Global. |

| (5) | HomeStreet excludes deferred tax valuation allowance and loss on multifamily loan sale, assumes 24.5% tax rate. |

| (6) | Estimated earnings per Mechanics management and HomeStreet management, respectively. HomeStreet’s management estimates are shown on a tax effected basis. Using consensus estimates for HomeStreet in 2025 and 2026, the contribution of HomeStreet would be 2.9% and 7.9%, respectively. |

| (7) | Omitted as not meaningful (“NM”) because the Mechanics number was positive and the HomeStreet number was negative. |

Pro Forma Financial Impact Analysis. KBW performed a pro forma financial impact analysis that combined projected income statement and balance sheet information of Mechanics and HomeStreet. Using (i) closing balance sheet estimates assumed as of September 30, 2025 for Mechanics and HomeStreet taken from Mechanics and HomeStreet management estimates, respectively, (ii) earnings projections for Mechanics and HomeStreet provided by Mechanics management and HomeStreet management, respectively, and (iii) pro forma assumptions (including, without limitation, the cost savings expected to result from the merger as well as certain purchase accounting and earnings adjustments and other merger-related adjustments and the restructuring charge assumed with respect thereto) provided by Mechanics management, KBW analyzed the potential financial impact of the merger on certain projected financial results of Mechanics. This analysis indicated that the merger could be accretive to Mechanics’ estimated 2026 EPS of $3,279.37 by 31.8% and could be accretive to Mechanics’ estimated tangible book value per share at closing assumed as of September 30, 2025 of $24,447.00 by 1.2%. The analysis also indicated that based on the consideration to be paid to holders of Mechanics common stock and the estimates and assumptions described above, the 2026 pro forma EPS of the combined company is $1.31 and the pro forma tangible book value per share is $7.49 at closing assumed as of September 30, 2025. Furthermore, the analysis indicated that, pro forma for the merger, each of Mechanics’ tangible common equity to tangible assets ratio, Tier 1 Leverage Ratio, Common Equity Tier 1 Ratio,

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Tier 1 Capital Ratio