Mechanics Bank and HomeStreet receive all regulatory approvals for merger

WALNUT CREEK, Calif. - Mechanics Bank and HomeStreet, Inc. (NASDAQ:HMST), currently trading at $13.16 with a market capitalization of $249 million, announced Tuesday they have received all required regulatory approvals for their previously announced all-stock strategic merger. According to InvestingPro data, HomeStreet has seen a significant 26.7% price increase over the past six months, though analysis suggests the stock is currently overvalued.

The transaction, which will see HomeStreet Bank merge with and into Mechanics Bank, has been approved by 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 close around September 2, 2025, pending approval by HomeStreet shareholders and satisfaction of remaining customary closing conditions. Mechanics Bank shareholders have already approved the transaction through written consents.

Following the merger, Mechanics Bank will survive as a banking corporation under California law and become a wholly owned subsidiary of HomeStreet. The parent company will remain a Washington corporation but will be renamed Mechanics Bancorp and continue as a publicly traded company.

Mechanics Bank, founded in 1905 and headquartered in Walnut Creek, California, currently has over $16 billion in assets and 111 branches. HomeStreet, based in Seattle, Washington, primarily focuses on real estate lending and commercial and consumer banking services in the Western United States and Hawaii.

The companies first announced the merger earlier this year, with the Securities and Exchange Commission declaring the Registration Statement effective on July 16, 2025. HomeStreet began mailing the definitive proxy statement to shareholders the same day.

This information is based on a press release statement from both companies.

In other recent news, HomeStreet Inc. held its 2025 Annual Meeting of Shareholders, where several significant decisions were made. Shareholders re-elected all eight director candidates nominated by the board, including Mark K. Mason and Sandra A. Cavanaugh. Each director will serve until the 2026 Annual Meeting or until successors are elected and qualified. Additionally, shareholders approved an advisory vote on the compensation of the company’s named executive officers for the year 2024. This proposal received 12,412,036 votes in favor, with 680,253 against and 50,482 abstentions. These developments reflect ongoing shareholder support for the company’s leadership and executive compensation plans.

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