HomeStreet jumps on merger deal with Mechanics Bank

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