Pasadena’s HomeStreet Bank Branch to Rebrand as Mechanics Bank Following Merger

HomeStreet Bank branch in Pasadena (Photo – Special to Colorado Boulevard Newspaper)

Mechanics Bank and HomeStreet, Inc. (NASDAQ: HMST), the holding company of HomeStreet Bank, have announced the receipt of all required regulatory approvals for their previously announced all-stock strategic merger, marking a key milestone in the integration of the two financial institutions.

By John Boucher

Regulatory approvals were granted by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the California Department of Financial Protection and Innovation, and the Washington Department of Financial Institutions.

Under the terms of the merger, HomeStreet Bank will merge with and into Mechanics Bank, with the transaction expected to close on or around September 2, 2025. Completion remains subject to approval by HomeStreet shareholders, as well as the satisfaction or waiver of other customary closing conditions outlined in the merger agreement.

Mechanics Bank has already secured the necessary shareholder approval through written consents from Ford Financial Fund, its affiliates, and other key investors.

Following the merger, Mechanics Bank will continue as a California banking corporation and become a wholly owned subsidiary of HomeStreet. HomeStreet, meanwhile, will remain a Washington corporation, be renamed Mechanics Bancorp, and continue to be publicly traded.