Latham Advises on HomeStreet’s Strategic Merger With Mechanics Bank

HomeStreet, Inc. (NASDAQ: HMST) (HomeStreet), the holding company of HomeStreet Bank, has announced that it has entered into a definitive merger agreement providing for an all-stock business combination between HomeStreet and Mechanics Bank. The transaction values HomeStreet at a pre-transaction equity value of US$300 million and Mechanics Bank at a pre-transaction equity value of US$3.3 billion. The combined company will expand Mechanics Bank’s West Coast footprint and create a combined company with 168 branches and US$23 billion in assets. The transactions contemplated by the merger agreement are subject to customary closing conditions, including the receipt of regulatory approvals and approval by HomeStreet’s and Mechanics Bank’s shareholders, with the merger expected to close in the third quarter of 2025.

Latham & Watkins LLP represents Keefe, Bruyette & Woods, A Stifel Company, financial advisor to HomeStreet, in the transaction with a corporate team led by Century City partner Steven Stokdyk, with associate Dylan Shamoon.