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HomeStreet Announces Merger with Mechanics Bank

Story Highlights
  • HomeStreet and Mechanics Bank agreed to merge, with HomeStreet Bank merging into Mechanics Bank.
  • The merger requires shareholder and regulatory approvals, with a $10 million termination fee for HomeStreet under certain conditions.
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Confident Investing Starts Here:

HomeStreet ( (HMST) ) just unveiled an announcement.

On March 28, 2025, HomeStreet, Inc. and Mechanics Bank entered into a merger agreement for an all-stock business combination, with HomeStreet Bank merging into Mechanics Bank, which will become a wholly-owned subsidiary of HomeStreet. The merger, unanimously approved by both boards, will result in HomeStreet being renamed Mechanics Bancorp and remaining publicly traded. The merger agreement outlines the exchange ratios for both voting and non-voting common stock and includes provisions for governance, equity awards, and termination rights. The merger is subject to shareholder and regulatory approvals, with a termination fee of $10 million payable by HomeStreet under certain conditions. Additionally, a consulting agreement with HomeStreet’s CEO, Mark Mason, will take effect post-merger, and certain executives are expected to terminate their employment following the merger.

More about HomeStreet

HomeStreet, Inc. is a Washington-based corporation operating in the banking industry, with HomeStreet Bank as its wholly owned subsidiary. The company focuses on commercial banking services and is publicly traded.

YTD Price Performance: 12.85%

Average Trading Volume: 191,729

Technical Sentiment Signal: Hold

Current Market Cap: $227.2M

See more insights into HMST stock on TipRanks’ Stock Analysis page.

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