HomeStreet jumps on merger deal with Mechanics Bank

Mechanics Bancorp

31/03/2025 14:09

** Regional lender HomeStreet's HMST.O shares jump 10.1% to $10.24 in premarket trading

** Larger rival Mechanics Bank agrees to acquire HMST in a $300 million all-stock deal, the companies say

** HomeStreet will issue shareholders of privately-held Mechanics 212.5 million shares

** Upon deal close, HMST will be renamed Mechanics Bancorp and remain a publicly traded company

**  Deal, expected to close in Q3 2025, will boost Mechanics' market presence with a full West Coast footprint from San Diego to Seattle

** HMST had last year agreed to merge with smaller rival FirstSun Capital Bancorp FSUN.O, but U.S. banking regulators did not sign off on the deal

** J.P. Morgan advised Mechanics while Keefe, Bruyette & Woods advised HMST

** As of last close, HMST stock has lost 78.9% of its value since IPO in 2012

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))