HomeStreet and Mechanics Bank Merger Receives Regulatory Approval

HomeStreet, Inc. and Mechanics Bank have received regulatory approvals for their planned merger. HomeStreet is a diversified financial services company with commercial banking, mortgage banking, and consumer/retail banking activities serving customers primarily in the Western United States. The merged entity will provide commercial banking products and services to small and medium-sized businesses and consumer banking products and services to individuals. The merger is expected to expand the company's commercial loan portfolio and increase its customer base.

HomeStreet, Inc. (NASDAQ: HMST) and Mechanics Bank have received all necessary regulatory approvals for their strategic merger. The approvals were granted by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the California Department of Financial Protection and Innovation, and the Washington Department of Financial Institutions. The merger is expected to be completed by September 2, 2025, pending shareholder approval and the satisfaction of customary closing conditions.

Mechanics Bank, with over $16 billion in assets and 111 branches, will merge with and into HomeStreet Bank. Post-merger, Mechanics Bank will continue to operate as a wholly-owned subsidiary of HomeStreet, with its headquarters in Walnut Creek, California. HomeStreet will rename to Mechanics Bancorp and continue to be a publicly traded company based in Seattle, Washington.

The merger aims to expand HomeStreet's commercial loan portfolio and increase its customer base. HomeStreet, a diversified financial services company, serves consumers and businesses in the Western United States and Hawaii. The merged entity will provide commercial banking products and services to small and medium-sized businesses and consumer banking products and services to individuals.

The regulatory approvals come after the companies announced the merger in August 2025. The merger agreement includes the acquisition of Mechanics Bank by HomeStreet in an all-stock transaction. Shareholders of Mechanics Bank have already given their consent to the merger.

The merger is subject to several conditions, including the approval of shareholders of HomeStreet and the satisfaction of customary closing conditions. HomeStreet has filed a Registration Statement on Form S-4 with the Securities and Exchange Commission (SEC) for the merger, which includes a proxy statement/prospectus/consent solicitation statement.

HomeStreet and Mechanics Bank have not yet disclosed the financial details of the merger, such as the expected cost savings and synergies. However, the companies have stated that they anticipate achieving significant financial benefits from the merger within the expected time frames.

The merger is expected to create a more robust financial institution with a larger commercial loan portfolio and a broader customer base. The combined entity will be well-positioned to serve small and medium-sized businesses and individuals in the Western United States and Hawaii.

[1] https://www.businesswire.com/news/home/20250819418557/en/Mechanics-Bank-and-HomeStreet-Inc.-Receive-Regulatory-Approvals-for-Pending-Strategic-Merger