Mechanics Bank and HomeStreet Receive Regulatory Approvals for Strategic Merger.

Mechanics Bank and HomeStreet, Inc. have received regulatory approvals for their pending strategic merger. The merger, which involves HomeStreet Bank merging with and into Mechanics Bank, has been approved 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 on or around September 2, 2025, pending approval by shareholders.

Mechanics Bank and HomeStreet, Inc. (NASDAQ: HMST) have received all necessary regulatory approvals for their pending strategic merger. The merger, which involves HomeStreet Bank merging with and into Mechanics Bank, has been approved 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 [1].

The merger is expected to be completed on or around September 2, 2025, pending approval by shareholders of HomeStreet. The requisite approval of the merger by shareholders of Mechanics Bank has been obtained through the written consents delivered by Ford Financial Fund and its affiliates and certain other shareholders of Mechanics Bank [1].

Under the terms of the merger, Mechanics Bank will survive as a banking corporation incorporated under the laws of the State of California and become a wholly owned subsidiary of HomeStreet. HomeStreet will be renamed Mechanics Bancorp and will remain a publicly traded company [1].

Mechanics Bank, based in Walnut Creek, California, is an independent, full-service bank with over $16 billion in assets and 111 branches. It offers a wide range of products and services in consumer and business banking, commercial lending, cash management, private banking, and wealth management. HomeStreet, Inc., headquartered in Seattle, Washington, serves consumers and businesses in the Western United States and Hawaii, with a principal subsidiary of HomeStreet Bank [1].

The merger is anticipated to bring about cost savings, synergies, and other financial benefits. However, the company cautions that actual results may differ from those expressed in forward-looking statements. Important factors that could affect the merger include the ability to successfully consummate the merger, the failure to satisfy closing conditions, unexpected delays, and the ability to achieve expected cost savings and synergies [1].

Investors and shareholders are urged to review the Registration Statement on Form S-4 and the definitive proxy statement/prospectus/consent solicitation statement filed with the SEC for more detailed information regarding the merger [1].

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