Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 77

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 77
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 shares of HomeStreet common stock to Mechanics shareholders in respect of their Mechanics common stock. The issuance of these new shares of HomeStreet common stock may result in fluctuations in the market price of HomeStreet common stock, including a stock price decrease, including as a result of the dilution caused by such issuance.

**Shareholder litigation related to the merger could prevent or delay the completion of the merger, result in the payment of damages or otherwise negatively impact the business and operations of HomeStreet and Mechanics.**

Shareholders of HomeStreet and/or Mechanics may file lawsuits against HomeStreet, Mechanics and/or the directors or officers of either company in connection with the transaction. One of the conditions to the closing is that no order, injunction or decree issued by any court or governmental entity of competent jurisdiction or other legal restraint preventing the consummation of the merger or any of the other transactions contemplated by the merger agreement be in effect. If any plaintiff were successful in obtaining an injunction prohibiting HomeStreet or Mechanics defendants from completing the merger or any of the other transactions contemplated by the merger agreement, then such injunction may delay or prevent the consummation of the merger and could result in significant costs to HomeStreet and/or Mechanics, including any cost associated with the indemnification of directors and officers of each company. HomeStreet and Mechanics may incur costs in connection with the defense or settlement of any shareholder lawsuits filed in connection with the merger or any other transactions contemplated by the merger agreement. Such litigation could have an adverse effect on the financial condition and results of operations of HomeStreet and Mechanics and could prevent or delay the completion of the merger.

**If the combined company fails to maintain proper and effective internal controls, the combined company’s ability to produce accurate and timely financial statements could be impaired, which could harm its operating results, its ability to operate its business and investors’ views of the combined company.**

The combined company will be required to comply with Section 404 of the Sarbanes-Oxley Act. Section 404 of the Sarbanes-Oxley Act requires public companies to conduct an annual review and evaluation of their internal controls and attestations of the effectiveness of internal controls by independent auditors. Ensuring that the combined organization has adequate internal financial and accounting controls and procedures in place so that it can produce accurate financial statements on a timely basis is a costly and time-consuming effort that will need to be evaluated frequently. The combined company’s failure to maintain the effectiveness of its internal controls in accordance with the requirements of the Sarbanes-Oxley Act could have a material