Mechanics Bancorp · NASDAQ:MCHB
Mechanics Bancorp — Q4 2025 Earnings Presentation
27 slides from Mechanics Bancorp's earnings presentation, Jan 30, 2026
Slide 1: Mechanics Bancorp Fourth Quarter Earnings Presentation
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp Fourth Quarter Earnings Presentation January 30, 2026 Seattle, WA San Francisco, CA Los Angeles, CA 1
Slide 2: Forward-Looking Statements and Other
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 FORWARD-LOOKING STATEMENTS AND OTHER This presentation and statements made by representatives of Mechanics Bancorp (“Mechanics” or the “Company”) during the course of this presentation include “forward- looking stateme
Slide 3: Disclaimer (cont'd)
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Disclaimer (cont’d) FORWARD-LOOKING STATEMENTS AND OTHER (cont’d) For further discussion of such factors, see the risk factors described in our Current Report on Form 8-K filed on September 2, 2025, subsequent Annual R
Slide 4: Mechanics Bancorp 4th Quarter 2025 Financial Highlights
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp 4th Quarter 2025 Financial Highlights 41 Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” in the back of this presentation Condensed Balance Sheet ($ in millions, e
Slide 5: Mechanics Bancorp Strategic Update
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp Strategic Update 5 ➢ Integration of HomeStreet is proceeding smoothly with our core conversion scheduled for March 2026 ➢ Remain on track to deliver on our initial costs savings estimate of $82mm (~43
Slide 6: Mechanics Bancorp Overview
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Key Stats vs. $10–100bn public U.S. banks Mechanics Bancorp Overview Source: S&P Global Market Intelligence; Note: Financial data as of December 31, 2025, unless otherwise specified; 1 Includes banks headquartered in C
Slide 7: Low-Cost Deposits Deliver Superior Returns with Low-Risk Assets
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Low-Cost Deposits Deliver Superior Returns with Low-Risk Assets 7Source: S&P Global Market Intelligence Note: Financial data as of most recent quarter available; ¹ Subject to Board and regulatory approval Exceptional f
Slide 8: Compelling Investment Thesis
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Premier community bank in attractive West Coast markets (#3 CA and #4 West Coast bank by deposits¹) Leading profitability (~18% 2027E ROATCE, ~1.4% 2027E ROAA) Simple and efficient business model – low-risk asset strat
Slide 9: Fourth Quarter 2025 Financial Drivers
Fourth Quarter 2025 Financial Drivers 26 9
Slide 10: Net Interest Income & Margin
$15.1 $15.1 $15.2 $17.2 $20.7 3.38% 3.45% 3.44% 3.36% 3.47% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Average Earning Assets NIM Net Interest Income & Margin Average Earning Assets and NIM Trends Key Highlights 10 Average Earning Assets Mix Trend ($ in billions) ➢ Q4‘25 net interest income increased $35.8
Slide 11: Non-Interest Income
Non-Interest Income Non-Interest Income Trend Non-Interest Income Mix (ex Bargain Purchase Gain) Key Highlights 11 ($ in millions) ➢ Q4’25 non-interest income decreased $31.3 million, or 28.5%, to $78.5 million from $109.8 million in Q3’25 ➢ Q4’25 includes an adjustment to the bargain purchase gain
Slide 12: Non-Interest Expense
Non-Interest Expense Non-Interest Expense Trend Non-Interest Expense (ex Acquisition and Integration Costs) Key Highlights 12 ($ in millions) ➢ Q4’25 non-interest expense decreased $33.8 million, or 20.7%, to $129.5 million from $163.3 million in Q3’25 ➢ Merger-related costs during Q4‘25 were $3.5 m
Slide 13: Loan Portfolio Overview
Loan Portfolio Overview Loan Balance and Yield Trends Quarter-over-Quarter Loan Metrics Key Highlights 13 9.6 9.4 9.2 14.6 14.2 9.8 9.5 9.3 11.0 14.4 5.07% 5.03% 5.16% 5.13% 5.30% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Loans Avg Loans Loan Yield ($ in billions) ($ in millions) ➢ Q4‘25 loan interest inco
Slide 14: Granular, Low-Risk Commercial Lending with a Multifamily Focus
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Granular, Low-Risk Commercial Lending with a Multifamily Focus ✓ Mechanics Bank’s commercial lending is highly granular and well-diversified across both collateral types and geography ✓ Focus on multifamily lending, wi
Slide 15: Asset Quality
Asset Quality NCOs / Average Loans Loan Loss Reserves / NPAs NPAs / Assets Loan Loss Reserves / Loans HFI 15 * Ratios are annualized 0.39% 0.37% 0.31% 0.28% 0.15% 0.05% 0.02% 0.01% 0.04% 0.23% 0.43% 0.40% 0.32% 0.32% 0.38% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Auto NCOs / Avg Loans Non-Auto NCOs / Avg
Slide 16: Securities Portfolio
Securities Portfolio Securities Balance and Yield Trends Quarter-over-Quarter Loan Metrics Key Highlights Quarte -over-Quarte Securities Metrics 16 4.5 5.0 4.0 4.9 5.4 4.3 4.8 4.3 4.2 5.1 3.74% 4.04% 3.88% 3.76% 3.86% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Securities Avg Securities Securities Yield ($ i
Slide 17: Deposits Overview
Deposits Overview Deposit Balance and Cost Trends Quarter-over-Quarter Loan Metrics Key Highlights Quarter-over-Quarter Deposit Metrics 17 13.9 14.0 14.0 19.5 19.0 13.9 13.8 13.9 15.8 19.2 1.38% 1.32% 1.39% 1.45% 1.43% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Deposits Avg Deposits Deposits Rate ($ in bill
Slide 18: Details on Mechanics Bank Deposits
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Details on Mechanics Bank Deposits at 12/31/2025 18Source: Mechanics management; Note: Financial data as of December 31, 2025; ¹ Represents spot rate as of December 31, 2025 Mechanics Bank Deposits ($ in millions, exce
Slide 19: Capital and Liquidity Update
➢ Mechanics Bank’s capital ratios exceed minimums to be “well-capitalized” and meet all regulatory capital requirements and internal policy limits ➢ Available liquidity totaled approximately $17.0 billion at 12/31/25, an increase of $2.2 billion relative to 9/30/25 as additional acquired assets from
Slide 20: Appendix
& Mechanics Appendix
Slide 21: Details on Mechanics Bank Standalone CRE Portfolio
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Details on Mechanics Bank Standalone CRE Portfolio 21 Collateral Type Balance % of Owner-occupied LTV1 Avg Size Total classified Non-owner classified Owner classified Total NPL Multifamily $5,355 0% 55% $3.9 $119 $0 $0
Slide 22: Details on Mechanics Bank Standalone CRE Portfolio (cont'd)
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Details on Mechanics Bank Standalone CRE Portfolio (cont’d) 22 Collateral Type Multifamily Retail Office Industrial / Warehouse Special Purpose Hotel / Motel Mixed Use Total Collateral Type Multifamily Retail Office In
Slide 23: Non-GAAP Financial Measures and Reconciliations
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations Return on Average Equity and Return on Average Tangible Equity 23 ($ in thousands) 1 Estimated statutory tax rate of 27.25 for quarter ended December 31, 2025, and 28.5%
Slide 24: Non-GAAP Reconciliations: Efficiency Ratio
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Efficiency Ratio 24 ($ in thousands) December 31, September 30, December 31, Efficiency Ratio Ref 2025 2025 2024 Noninterest expense (e) 129,510$ 163,329$ 84,449
Slide 25: Non-GAAP Reconciliations: Book Value and Tangible Book Value Per Share
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Book Value and Tangible Book Value Per Share 25 ($ in thousands, except shares and per share data) 1 Includes 11,144,480 Class A Shares issuable upon the convers
Slide 26: Non-GAAP Reconciliations: Common Equity Ratio and Tangible Common Equity Ratio
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Common Equity Ratio and Tangible Common Equity Ratio 26 ($ in thousands) As of As of Common Equity Ratio and December 31, September 30, December 31, Tangible Com
Slide 27: Non-GAAP Reconciliations: Core Net Income
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Core Net Income 27 ($ in thousands) 1 $20.2mm double-count provision adjustment. 2 $55.1mm bargain purchase gain. 3 $3.5mm one-time merger expenses. 4 Non-core a