HomeStreet, Inc. and Mechanics Bank have mutually agreed to merge, following the receipt of all necessary regulatory approvals, creating a stronger banking entity in California.

Information on the Target

Mechanics Bank, headquartered in Walnut Creek, California, is an independent full-service financial institution with over $16 billion in assets and a strong deposit franchise, operating 111 branches. Established in 1905, the bank has dedicated itself to helping families, businesses, and communities thrive, and has transformed into one of the largest banks based in California. Mechanics Bank is renowned for its personalized banking services, offering a diverse array of financial products that include consumer banking, business banking, commercial lending, cash management, private banking, and comprehensive wealth management and trust services. More information can be found at www.MechanicsBank.com.

Industry Overview in California

California's banking industry is one of the most competitive and diverse in the United States, contributing significantly to the state's robust economy. The sector encompasses various services, including commercial banking, investment banking, mortgage services, and wealth management. With a focus on innovation and digital transformation, many banks are investing heavily in technology to enhance customer experience and streamline operations. This ongoing evolution has led the industry to adapt to changing consumer preferences, driving significant growth in areas such as mobile banking and fintech partnerships.

The California banking landscape also reflects the challenges and opportunities presented by economic fluctuations and regulatory changes. Banks in the state must navigate complex regulations while ensuring compliance and risk management, partic