The anticipated merger between Mechanics Bank and HomeStreet is set to create a substantial banking entity with $23 billion in assets and 168 branches across the West Coast. Mechanics Bank, established in California, and HomeStreet from Seattle aim to enhance their market presence, providing a full-service bank from San Diego to Seattle. Mechanics Bank shareholders will receive HomeStreet stock, marking a pivotal moment for both organizations. The merger promotes Mechanics Bank's evolution into a publicly-traded holding company, ensuring greater future growth opportunities.
This is a very significant milestone for Mechanics Bank and we are excited through this transaction to extend our market presence with a full West Coast footprint from San Diego to Seattle, Carl B. Webb, chairman of the board of directors of Mechanics Bank, said in a statement.
The strategic merger also provides us with the opportunity to become a publicly-traded bank holding company, which better positions Mechanics Bank for future opportunities.
HomeStreet has a pre-transaction estimated equity value of $300 million, while Mechanics Bank has equity value of $3.3 billion.
Existing HomeStreet shareholders are expected to own approximately 8.3% of the combined company by the completion date of the merger.
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