Mechanics Bancorp Reports Third Quarter 2025 Results Following Completion of Merger with HomeStreet Bank | MCHB Stock News

Mechanics Bancorp (Nasdaq: MCHB) reported its third quarter 2025 results following its merger with HomeStreet Bank, completed on September 2, 2025. Highlights include total assets of $22.7 billion, net income of $55.2 million, and a CET1 ratio of 13.42%. The merger significantly impacted financial results, with total deposits increasing by 39% to $19.5 billion. The company recognized a preliminary bargain purchase gain of $90.4 million and incurred acquisition costs of $63.9 million. CEO C.J. Johnson expressed optimism about the merger's strategic benefits for expanding into new markets.

Mechanics Bank Completes Merger with HomeStreet Bank, Expanding West Coast Presence

Mechanics Bancorp has completed its merger with HomeStreet Bank, enhancing its West Coast presence with a total of 166 branches across California, Washington, Oregon, and Hawaii, and assets exceeding $22 billion. Executive Chairman Carl B. Webb highlighted the merger's significance in creating a premier community bank from San Diego to Seattle. HomeStreet Bank will operate as a wholly owned subsidiary of Mechanics Bancorp, which has been renamed from HomeStreet, Inc.

HomeStreet Inc. and Mechanics Bank Receive Regulatory Approvals for Strategic Merger, Completion Expected by September 2025

HomeStreet, Inc. and Mechanics Bank have received regulatory approvals for their strategic merger, with completion expected around September 2, 2025. HomeStreet Bank will merge into Mechanics Bank, which will operate as a California-based banking corporation and become a wholly owned subsidiary of HomeStreet. HomeStreet will be renamed Mechanics Bancorp and remain publicly traded, pending shareholder approval and customary closing conditions.

HomeStreet SEC Approval Advances Mechanics Bank Merger

HomeStreet, Inc. has announced a merger agreement with Mechanics Bank, with HomeStreet Bank merging into Mechanics, making it a wholly owned subsidiary. The SEC approved the registration statement on July 16, 2025, allowing the merger to proceed. Analysts rate HMST stock as a Buy with a $14.00 price target, but Spark's AI Analyst gives it a Neutral rating due to weak financial performance and valuation concerns. HomeStreet primarily offers commercial banking services through its subsidiary, HomeStreet Bank.

Homestreet | 10-Q: FY2025 Q2 EPS Misses Estimate at USD -0.23