Mechanics Bancorp, the parent company of Mechanics Bank, has closed its previously announced merger deal with HomeStreet Bank, creating a significant expansion of its presence along the US West Coast.
The newly combined entity now operates 166 branches across California, Washington, Oregon, and Hawaii, with assets surpassing $22bn.
The merger was officially announced in March 2025 as an all-stock transaction.
HomeStreet Bank has been consolidated into Mechanics Bank, which remains as a corporation governed by Californian law and continues as a wholly owned subsidiary of Mechanics Bancorp.
The pre-transaction equity value of HomeStreet was estimated at $300m. In contrast, Mechanics Bank’s value stood at approximately $3.3bn before the merger.
As a result of the merger, shareholders from HomeStreet hold about 8.3% of the merged company, while those from Mechanics Bank maintain around 91.7%.
Ford Financial Fund and its affiliates continue to have a substantial influence, holding approximately 74.3% of the shares in the combined company.
Mechanics Bancorp executive chairman Carl Webb said: “We are pleased to close this transaction and create the premier community bank on the West Coast with our presence now spanning from San Diego to Seattle.
“We extend a warm welcome to HomeStreet’s customers and employees and look forward to serving the communities of the Pacific Northwest and Hawaii.”
Mechanics Bancorp is a holding company based in Walnut Creek, California.
Prior to this merger, Mechanics Bank operated 112 branches throughout California and managed assets exceeding $16bn. Established in 1905, the bank offers a range of banking services including consumer and business banking, commercial lending, cash management services, private banking, as well as wealth management and trust services.
Before its merger, HomeStreet Bank was headquartered in Seattle, Washington. Founded in 1921, it operated 56 branches across Washington, Oregon, Southern California, and Hawaii with assets amounting to approximately $8bn.
It focused primarily on real estate lending and provided commercial and consumer banking services.
