Mechanics Bancorp Soars 10.59% on Merger Completion

Mechanics Bancorp, formerly known as HomeStreet, Inc., saw a significant surge in its stock price, rising 10.59% in pre-market trading on September 3, 2025. This surge can be attributed to the completion of a strategic merger with Mechanics Bank, which was finalized on September 2, 2025.

The merger, which was first announced in March 2025, involved Mechanics Bank merging with and into HomeStreet Bank, with Mechanics Bank surviving as a wholly-owned subsidiary of the combined entity. The merger significantly expanded Mechanics Bank's West Coast footprint, creating a combined company with 166 branches across California.

As part of the merger, Mechanics Bancorp issued 200,901,384 shares of Class A common stock and 1,114,448 shares of Class B common stock to Mechanics Bank shareholders. This resulted in legacy Mechanics Bank shareholders owning approximately 91.7% of the company on an economic basis and 91.3% of the voting power, while legacy HomeStreet shareholders owned approximately 8.3% of the company on an economic basis and 8.7% of the voting power.

The merger also brought about significant changes in the company's leadership. Mark Mason, the former President and Chief Executive Officer of HomeStreet, Inc., resigned from his position, along with other key executives. C.J. Johnson, who had been serving as the President and Chief Executive Officer of Mechanics Bank, was appointed to the same position at Mechanics Bancorp. Other key appointments included Nathan Duda as Executive Vice President and Chief Financial Officer, Chris Pierce as Executive Vice President and Chief Operating Officer, and Fernando Pelayo as Chief Accounting Officer.

The merger was approved by the company's stockholders and was subject to customary closing conditions. The combined company is expected to benefit from the expanded footprint and increased scale, positioning it for future growth and success in the banking industry.