Mechanics Bank Announces $3.6 Billion Merger with HomeStreet

Deal News | Mar 31, 2025 | Wachtell, Lipton, Rosen & Katz

Mechanics Bank and HomeStreet, Inc. announced a definitive agreement for a $3.6 billion merger, set to unify the operations of the two institutions. Under the terms of the merger, which was announced on March 31, 2025, by Mechanics Bank and HomeStreet, Inc., HomeStreet will be renamed Mechanics Bancorp and retain its status as a publicly traded company. Post-merger, the shareholders of the original Mechanics Bank will own a commanding 91.7% of the newly combined entity, highlighting a strategic alignment aimed at enhancing banking operations and market presence.

Sectors

Banking
Financial Services
Legal Advisory

Geography

United States – The merger involves Mechanics Bank and HomeStreet, Inc., both operating within the United States, and the transaction has implications for the U.S. banking sector.

Industry

Banking – This industry is relevant given that the article discusses a merger between two banks, Mechanics Bank and HomeStreet Bank.
Financial Services – The financial services industry encompasses the operations and services provided by banks such as Mechanics Bank and HomeStreet Bank, including consumer and commercial banking services.
Legal Advisory – Wachtell, Lipton, Rosen & Katz is a law firm involved as an advisor in the merger, highlighting the relevance of legal advisory services in this transaction.

Financials

$3.6 billion – The valuation of the transaction merging Mechanics Bank and HomeStreet Bank.

Participants

Name	Role	Type	Description
Mechanics Bank	Bidding Company	Company	Mechanics Bank is merging with HomeStreet, Inc. to form a new entity under the name Mechanics Bancorp.
HomeStreet, Inc.	Target Company	Company	HomeStreet, Inc. is the holding company for HomeStreet Bank and is part of a merger with Mechanics Bank.
Wachtell, Lipton, Rosen & Katz	Legal Advisor	Company	A law firm advising Mechanics Bank on the merger with HomeStreet Bank.