Business Description

Overview M echanics Bancorp, a Washington corporation, is a financial holding company and primarily operates through 121 -year- old Mechanics Bank, its wholly-owned subsidiary. Mechanics Bank is a full-service community bank wit h 166 branches throughout California, Washington, Oregon and Hawaii . Following the strategic Merger of HomeStreet Bank with and into Mechanics Bank on September 2, 2025, with Mechanics Bank surviving the Merger as a wholly-owned subsidiary of the Company, the assets, liabilities and operations of HomeStreet Bank became the assets, liabilities and operations of Mechanics Bank. Headquartered in Walnut Creek, California, Mechanics Bank provides a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services. Prior to merging with and into Mechanics Bank on September 2, 2025, HomeStreet Bank was principally engaged in commercial banking, consumer banking, and real estate lending, including construction and permanent loans on commercial real estate and single-family residences. It also sold insurance products for consumer clients. It provided these financial products and services to its customers through bank branches, loan production offices and ATMs , and through online, mobile and telephone banking channels. Ceasing the origination of auto loans in February 2023, Mechanics Bank continued to service its existing auto loan portfolio until May 1, 2025, when it entered into a servicing agreement with a third-party servicer to oversee and manage Mechanics Bank’s active portfolio of auto loans. The portfolio consisted of new and pre-owned retail automobile sales contracts purchased from both franchised and independent automobile dealerships in the United States. The Company’s business strategy is to offer a full range of financial products and services to our customer base consistent with a regional bank’s offerings while providing the responsive and personalized service of a community bank. We expect to maintain our business by: • marketing our services directly to prospective new customers; • obtaining new client referrals from existing customers; • adding experienced relationship managers, branch managers and loan officers who may have established client relationships that we can serve; • cross-selling our products and services; and • making opportunistic acquisitions of complementary businesses and/or establishing de novo offices in select markets within and outside our existing market areas. Our primary sources of liquidity include deposits, loan repayments and investment securities payments, both principal and interest, borrowings, and proceeds from the sale of loans and investment securities. Borrowings may include advances from FHLB, borrowings from the Federal Reserve Bank, federal funds purchased and borrowings from other financial institutions. 9 Locations In addition to our main office, as of December 31, 2025 , we operated 166 full service branch locations throughout California, Oregon, Washington and Hawaii, an d three stand-alone commercial lending centers in Southern California, Idaho and Utah. Loan Products We are committed to offering competitive lending products that meet the needs of our clients, are underwritten in a prudent manner, and provide an adequate return based on their size, credit risk and interest rate risk. Our loan products include commercial business loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development. The lending units under which these loans are offered include: Commercial Banking; Mortgage and Consumer Lending; Multifamily Lending; Commercial Real Estate Lending and Residential Construction Lending and Private Banking. In addition, certain consumer loans are offered through our retail branch network. We believe that we mitigate the risks inherent in our loan portfolio by adhering to sound underwriting practices, managed by experienced and knowledgeable credit professionals. These practices may include, among other considerations: analysis of a borrower’s prior credit history, financial statements, tax returns, cash flow projections, valuations of collateral based on reports of independent appraisers and verifications of liquid assets.…