HomeStreet Bank, a Seattle-based lender, has announced a proposed merger with Mechanics Bank, which is based in Walnut Creek, California. This merger comes after HomeStreet's previous attempt to merge with another bank failed in 2024. The deal values HomeStreet at approximately $300 million. Mechanics Bank Chairman Carl Webb stated that merging with HomeStreet is a natural extension for their operations. The merger has received approval from relevant authorities, marking a significant step in the consolidation of regional banks in Pennsylvania. In related news, Hope Bancorp has completed its merger with Territorial Bancorp, further indicating a trend of consolidation in the banking sector.