Company: MCHB
Filing Date: 2025-08-07
Form Type: 425
Source: 0001518715-25-000116
Chunk: 3

Company: Mechanics Bancorp
Filing Date: 2025-08-07
Form: 425
Chunk 3
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 following changes to the first full paragraph:

#### Mechanics Dividend

#### Discount Model Analysis.
KBW performed a dividend discount model analysis of Mechanics to estimate a range for the implied aggregate equity value of Mechanics. In this analysis, KBW applied management estimates for Mechanics and assumed long-term growth rates for Mechanics provided by Mechanics management, and KBW assumed discount rates ranging from 13.0% to 15.0% based on the cost of capital for comparable companies and the professional judgment of KBW. The range of values was derived by adding (i) the present value of the implied future excess capital available for dividends that Mechanics

#### had and
could generate over the period from December 31,

#### 2025

#### 2024
through December 31,

#### 2029

#### 2028
as a standalone company and (ii) the present value of Mechanics’ implied terminal value

#### at the end of such period

#### of $3.7 billion as of December 31, 2028
. The analysis utilized the assumptions provided by HomeStreet management that Mechanics would maintain a tangible common equity to tangible assets ratio of 8.00% and would retain sufficient earnings to maintain that level. In calculating the terminal value of Mechanics, KBW applied a range of 12.0x to 16.0x Mechanics’ estimated 2029 earnings based on comparable companies and the professional judgment of KBW. This dividend discount model analysis resulted in a range of implied aggregate equity value of Mechanics of $2,606 million to $3,414 million.

2. The disclosure under “Opinion of HomeStreet’s Financial Advisor” on page 149 of the Proxy Statement/Prospectus/Consent Solicitation Statement is hereby supplemented by making the following changes to the third full paragraph:

#### HomeStreet

#### Dividend

#### Discount

#### Model

#### Analysis.
KBW performed a dividend discount model analysis of HomeStreet to estimate a range for the implied equity value of HomeStreet. In this analysis, KBW utilized financial forecasts and projections relating to the assets and earnings of HomeStreet provided by HomeStreet management, and KBW assumed discount rates ranging from 14.0% to 16.0% based on the cost of capital for comparable companies and the professional judgment of KBW. The range of values was derived by adding (i) the present value of the implied future excess capital available for dividends that HomeStreet

#### had and
could generate over the period from December 31,