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Mechanics Bancorp
MCHBCIK 0001518715NasdaqAcceleratedSmaller ReportingState Commercial BanksWashingtonFY ends Dec 31
Period
FY 2025
Revenue
$49.73M
Net Income
$265.74M
Total Assets
$22.35B
Equity
$2.86B
Shares Out
18.92M
Op. Cash Flow
$193.59M
Business
Mechanics Bancorp is a diversified financial services company operating through a commercial bank subsidiary that provides banking and financial services. It offers commercial banking products and services to small and medium-sized businesses, real estate investors and professional firms, as well as consumer banking products and services to individuals, including deposit, lending and treasury services. The company conducts business through its banking operations and standalone commercial lending centers as its key operating segments. It serves customers throughout the western United States via full-service branches, commercial lending centers and digital channels.
Summary from filing dated 2025-03-07
Financials
Consolidated Statement of Income
Year Ended · In millions, except per-share amounts
| Concept | Trend | FY 2025 2025-12-31 | FY 2024 2024-12-31 | FY 2023 2023-12-31 | FY 2022 2022-12-31 | FY 2021 2021-12-31 |
|---|---|---|---|---|---|---|
| Loans interest and fees | 572 | 529 | 341 | 267 | 222 | |
| Investment securities | 179 | 132 | 50 | 34 | 22 | |
| Interest-bearing cash and other | 60 | 75 | 9 | 4 | 569,000 | |
| Total interest income | 812 | 736 | 400 | 304 | 244 | |
| Deposits | 220 | 189 | 138 | 32 | 11 | |
| Borrowings | 124,000 | 26 | 95 | 39 | 6 | |
| Long-term debt | 6 | 862,000 | — | — | — | |
| Total interest expense | 226 | 217 | 233 | — | — | |
| Net interest income | 586 | 519 | 167 | 233 | 227 | |
| Provision (reversal of provision) for credit losses on loans | 21 | −2 | — | — | — | |
| Ending balance | −987,000 | 52,000 | — | — | — | |
| Net interest income after provision for credit losses | 566 | 521 | 167 | 239 | 242 | |
| Noninterest income | 50 | 48 | — | — | — | |
| Loan servicing income | 3 | 968,000 | 13 | 12 | 7 | |
| Net gain (loss) on sales and calls of investment securities | 5 | −207 | — | — | — | |
| Income from bank owned life insurance | 5 | 3 | — | — | — | |
| Bargain purchase gain | 145 | 0 | — | — | — | |
| Other | 15 | 16 | 10 | 13 | 12 | |
| Total noninterest income (loss) | 223 | −139 | 42 | 52 | 120 | |
| Salaries and employee benefits | 219 | 191 | 111 | 116 | 132 | |
| Occupancy | 38 | 32 | 22 | 25 | 24 | |
| Equipment | 29 | 23 | — | — | — | |
| Professional services | 23 | 21 | — | — | — | |
| FDIC assessments and regulatory fees | 9 | 15 | — | — | — | |
| Amortization of intangible assets | 17 | 13 | — | — | — | |
| Data processing | 12 | 9 | — | — | — | |
| Loan related | 13 | 7 | — | — | — | |
| Marketing and advertising | 3 | 3 | — | — | — | |
| Other real estate owned related | 2 | 3 | — | — | — | |
| Acquisition and integration costs | 73 | 0 | — | — | — | |
| Other | 30 | 28 | — | — | — | |
| Total noninterest expense | 470 | 346 | 242 | 205 | 215 | |
| Income before income tax expense | 320 | 36 | −33 | 85 | 147 | |
| INCOME TAX EXPENSE | 54 | 7 | −5 | 18 | 31 | |
| NET INCOME | 266 | 29 | −28 | 67 | 115 | |
| Basic (in dollars per share) | 1.27 | 0.14 | −1.46 | 3.51 | 5.53 | |
| Diluted earnings per share (in dollars per share) | 1.27 | 0.14 | −1.46 | 3.49 | 5.46 | |
| Basic (in shares) | 209 | 202 | 19 | 19 | 21 | |
| Diluted (in shares) | 209 | 202 | 19 | 19 | 21 |
Consolidated Balance Sheet
As of · In millions, except per-share amounts
| Concept | Trend | FY 2025 2025-12-31 | FY 2025 2025-09-30 | FY 2024 2024-12-31 | FY 2023 2023-12-31 | FY 2022 2022-12-31 |
|---|---|---|---|---|---|---|
| Cash and cash equivalents | 1,030 | — | 1,000 | 216 | 73 | |
| Trading securities | 50 | — | 0 | — | — | |
| Securities available-for-sale, at fair value | 3,993 | — | 3,065 | — | — | |
| Securities held-to-maturity, at amortized cost (fair value of $1,170,818 and $1,196,000 at December 31, 2025 and 2024, respectively) | 1,337 | — | 1,440 | — | — | |
| Loans held for sale (includes $5,967 and zero carried at fair value at December 31, 2025 and 2024, respectively) | 6 | — | 543,000 | 20 | 17 | |
| Loan receivables | 14,177 | 14,569 | 9,643 | — | — | |
| Allowance for credit losses on loans | −153 | — | −89 | −134 | 42 | |
| Net loan receivables | 14,024 | — | 9,555 | 7,382 | 7,385 | |
| Mortgage servicing rights (includes $58,095 and zero carried at fair value at December 31, 2025 and 2024, respectively) | 86 | — | 0 | 104 | 112 | |
| Other real estate owned | 5 | — | 16 | 4 | 2 | |
| Federal Home Loan Bank stock, at cost | 17 | — | 17 | — | — | |
| Premises and equipment, net | 144 | — | 117 | 54 | 51 | |
| Bank owned life insurance | 170 | — | 84 | — | — | |
| Goodwill | 843 | — | 843 | — | — | |
| Other intangible assets, net | 212 | — | 39 | — | — | |
| Operating leases | 82 | — | 54 | — | — | |
| Interest receivable and other assets | 352 | 414 | 260 | — | — | |
| TOTAL ASSETS | 22,351 | 22,709 | 16,490 | 9,392 | 9,365 | |
| Noninterest-bearing demand deposits | 6,744 | — | 5,616 | — | — | |
| Interest-bearing transaction accounts | 8,129 | — | 6,139 | — | — | |
| Savings and time deposits | 4,152 | — | 2,187 | — | — | |
| Total deposits | 19,025 | — | 13,942 | 6,763 | 7,452 | |
| Long-term debt | 192 | — | 0 | 225 | 224 | |
| Operating lease liability | 87 | — | 56 | — | — | |
| Interest payable and other liabilities | 185 | — | 190 | 121 | 110 | |
| TOTAL LIABILITIES | 19,489 | — | 14,188 | 8,854 | 8,803 | |
| Commitments and contingencies (Note 15) | — | — | — | — | — | |
| Common stock, Class A, no par value, Authorized 1,897,500,000 shares, Issued and outstanding, 220,190,561 shares and 200,884,880 shares at December 31, 2025 and 2024, respectively; Class B, no par value, Authorized 2,500,000 shares, Issued and outstanding, 1,114,448 shares at December 31, 2025 and 2024 | 2,402 | — | 2,122 | 230 | 227 | |
| Retained earnings | 457 | 381 | 240 | 395 | 435 | |
| Accumulated other comprehensive income (loss), net of tax | 3 | — | −60 | −87 | −100 | |
| TOTAL SHAREHOLDERS EQUITY | 2,862 | 2,774 | 2,302 | 2,236 | 562 | |
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | 22,351 | 22,709 | 16,490 | 9,392 | 9,365 |
Consolidated Statement of Cash Flows
Year Ended · In millions, except per-share amounts
| Concept | Trend | FY 2025 2025-12-31 | FY 2024 2024-12-31 | FY 2023 2023-12-31 | FY 2022 2022-12-31 | FY 2021 2021-12-31 |
|---|---|---|---|---|---|---|
| Provision (reversal of provision) for credit losses on loans | 21 | −2 | — | — | — | |
| Originations of loans held for sale and principal collections, net | −122 | −6 | — | — | — | |
| Proceeds from sales of loans held for sale | 158 | 6 | — | — | — | |
| Net fair value adjustment and gain on sale of loans held for sale | −2 | −54,000 | — | — | — | |
| Amortization of premiums and discounts on investment securities | 1 | 7 | — | — | — | |
| Depreciation of premises and equipment | 11 | 9 | — | — | — | |
| Amortization of premiums and discounts on debt and deposits | 2 | 35,000 | — | — | — | |
| Net loss on debt extinguishment | 835,000 | 0 | 0 | 0 | 0 | |
| Share-based compensation expense | 6 | 5 | 4 | 4 | 3 | |
| Increase in cash surrender value of bank-owned life insurance | −4 | −2 | — | — | — | |
| Net loss on sale, disposal and write-down of other real estate owned | 2 | 1 | — | — | — | |
| Net loss (gain) on sale and disposal of premises and equipment | 100,000 | −804,000 | — | — | — | |
| Deferred income tax expense | 11 | 9 | — | — | — | |
| Amortization of deferred loan fees and costs | 12 | 19 | −1 | −1 | −9 | |
| Amortization of premiums and discounts on purchased loans | −23 | −4 | — | — | — | |
| Origination, amortization and change in fair value of MSRs, net | 4 | 0 | — | — | — | |
| Net decrease in trading securities | 593,000 | 0 | −6 | −19 | 0 | |
| Interest receivable and other assets | 77 | −9 | — | — | — | |
| Interest payable and other liabilities | −94 | 10 | — | — | — | |
| Net cash provided by operating activities | 194 | 292 | 8 | 218 | 173 | |
| Purchases | −1,208 | −2,659 | −53 | −760 | −179 | |
| Sales | 932 | 1,629 | — | — | — | |
| Maturities, calls and paydowns | 416 | 332 | — | — | — | |
| Maturities, calls and paydowns | 104 | 100 | — | — | — | |
| Loan originations and principal collections, net | 1,075 | 1,200 | — | — | — | |
| Purchases of loans | −46 | −143 | — | 0 | 0 | |
| Recoveries of loans charged-off | 13 | 16 | — | — | — | |
| Proceeds from sales of loans | 39 | 0 | — | — | — | |
| Proceeds from the settlement of bank-owned life insurance | 7 | 2 | — | — | — | |
| Proceeds from sales of other real estate owned | 13 | 2 | — | — | — | |
| Proceeds from sales of premises and equipment | 887,000 | 3 | — | 0 | 0 | |
| Purchases of premises and equipment | −7 | −6 | −4 | −7 | −3 | |
| Proceeds from sale of Federal Home Loan Bank stock | 50 | 0 | 223 | 147 | 109 | |
| Net cash acquired in Merger | 157 | 0 | — | — | — | |
| Net cash provided by investing activities | 1,546 | 476 | 484 | −2,654 | −126 | |
| Net decrease in deposits | −660 | −356 | −1,065 | 1,473 | 348 | |
| Repayment of long-term FHLB advances | −1,000 | 0 | — | — | — | |
| Net decrease in bank term funding | 0 | −750 | — | — | — | |
| Repayment of subordinated debt | 0 | −25 | — | — | — | |
| Cash dividends paid | −49 | −95 | −12 | −27 | −21 | |
| Net cash used by financing activities | −1,709 | −1,226 | −349 | 2,443 | −40 | |
| Net increase (decrease) in cash and cash equivalents | 30 | −458 | 143 | 8 | 7 | |
| Interest paid | 221 | 217 | 217 | 66 | 17 | |
| Income taxes paid, net of refunds | 31 | 4 | −5 | 5 | 34 | |
| Transfer from loans to other real estate owned | 3 | 2 | — | — | — | |
| Stock awards reclassified from liability to equity-based | 14 | 0 | — | — | — | |
| Stock consideration | 266 | 0 | — | — | — | |
| Fair value of assets acquired | 7,286 | 0 | — | — | — | |
| Fair value of liabilities assumed | 7,032 | 0 | — | — | — |
Filings
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