Q1 2026: Mechanics Bancorp (NASDAQ: MCHB) margins rise as income falls

Q: How much did Mechanics Bancorp (HMST) earn in the first quarter of 2026?

Mechanics Bancorp reported net income of $44.1 million for the first quarter of 2026. Diluted earnings per Class A share were $0.19 , compared with $111.2 million and $0.48 per share in the fourth quarter of 2025, which included a large bargain purchase gain.

Q: How did Mechanics Bancorp’s net interest margin and deposit costs trend in Q1 2026?

Net interest margin improved to 3.61% in Q1 2026 from 3.50% in Q4 2025. The total cost of deposits fell to 1.28% from 1.43% , reflecting deliberate runoff of higher-cost certificates of deposit and the benefit of prior Federal Reserve rate cuts on funding costs.

Q: What were Mechanics Bancorp’s asset, loan, and deposit balances as of March 31, 2026?

As of March 31, 2026, Mechanics Bancorp reported $21.4 billion in total assets, $13.9 billion in total loans held for investment, and $18.2 billion in total deposits. Noninterest-bearing deposits were $6.5 billion , representing 36% of total deposits, underscoring a relatively low-cost funding base.

Q: How did the HomeStreet merger and accounting changes affect Mechanics Bancorp’s results?

Q4 2025 results included a $55.1 million bargain purchase gain from the HomeStreet merger, boosting that quarter’s earnings. Mechanics also early adopted ASU 2025-08 for purchased seasoned loans, leading to a $20.3 million credit loss allowance at acquisition and retrospective adjustments to 2025 comparative figures.

Q: What non-recurring items impacted Mechanics Bancorp’s Q1 2026 earnings?

Management highlighted several notable items in Q1 2026: a $6.5 million pre-tax provision tied to qualitative factors and geopolitical uncertainty, $4.8 million of merger-related acquisition and integration costs, and a $1.7 million remeasurement of deferred tax assets affecting the effective tax rate.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Mechanics Bancorp reported first quarter 2026 net income of $44.1 million, or $0.19 per diluted Class A share. This was down from $111.2 million, or $0.48, in the fourth quarter of 2025, which benefited from a $55.1 million bargain purchase gain related to the HomeStreet merger.

Total assets were $21.4 billion with loans of $13.9 billion and deposits of $18.2 billion at March 31, 2026. Net interest margin improved to 3.61% from 3.50% as the total cost of deposits fell to 1.28%. Earnings were weighed by $6.5 million of provision tied to geopolitical uncertainty, $4.8 million of merger expenses and a $1.7 million deferred tax asset remeasurement. Capital remained strong with a 13.91% CET1 ratio and 8.66% Tier 1 leverage ratio, while credit quality indicators, including a 0.25% nonperforming assets-to-total assets ratio, stayed conservative.

Insights

Lower earnings from non-core items, with margins, capital and credit quality remaining solid.

Mechanics Bancorp generated Q1 2026 net income of $44.1 million versus $111.2 million in Q4 2025, when results included a $55.1 million bargain purchase gain. Core drivers were stable: net interest income was $179.0 million and net interest margin rose to 3.61%.

Earnings were pressured by several disclosed items: $6.5 million of provision tied to qualitative factor adjustments for geopolitical uncertainty, $4.8 million of merger-related costs, and a $1.7 million deferred tax asset remeasurement. Despite these, capital ratios stayed strong with a CET1 ratio of 13.91% and Total risk-based capital of 16.15% as of March 31, 2026.

Asset quality remained conservative, with nonperforming assets at $53.1 million, or 0.25% of total assets, and allowance for credit losses on loans at $156.8 million or 1.13% of loans. Management highlighted completion of the Legacy HomeStreet systems conversion and reiterated expectations for merger cost synergies and medium-term return targets, with further detail to be provided in future filings and presentations.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Net income: $44.1M Diluted EPS Class A: $0.19 Total assets: $21.4B +5 more

8 metrics

Net income $44.1M Quarter ended March 31, 2026; down from $111.2M in Q4 2025

Diluted EPS Class A $0.19 Quarter ended March 31, 2026; versus $0.48 in Q4 2025

Total assets $21.4B As of March 31, 2026

Total loans $13.9B Loans held for investment as of March 31, 2026

Total deposits $18.2B As of March 31, 2026; cost of deposits 1.28% for Q1 2026

Net interest margin 3.61% Quarter ended March 31, 2026; up from 3.50% in Q4 2025

CET1 capital ratio 13.91% Mechanics Bancorp regulatory capital, March 31, 2026 (preliminary)

Nonperforming assets ratio 0.25% Nonperforming assets to total assets as of March 31, 2026

Key Terms

bargain purchase gain, CET1 capital ratio, Allowance for credit losses, Net interest margin, +2 more

6 terms

bargain purchase gain financial

"Noninterest income in the first quarter of 2026 decreased from the fourth quarter of 2025 primarily due to the preliminary bargain purchase gain from the HomeStreet merger of $55.1 million in the fourth quarter of 2025."

A bargain purchase gain happens when a buyer acquires another company's assets for less than those assets' estimated fair value, producing an immediate accounting profit for the buyer. For investors, it matters because that one-time gain boosts the acquirer's reported earnings and can signal a very favorable deal — like finding a valuable item at a steep discount — but it may also prompt scrutiny about whether asset values or the deal terms were estimated correctly.

CET1 capital ratio financial

"Strong capital ratios (1), including an estimated 16.15% Total risk-based capital ratio, 13.91% Tier 1 capital ratio, 13.91% CET1 capital ratio and 8.66% Tier 1 leverage ratio at March 31, 2026."

The CET1 capital ratio measures a bank’s core equity (common shares and retained earnings) as a share of its assets after those assets are adjusted for how risky they are. It shows how big a financial cushion the bank has to absorb losses without needing outside help, so investors use it like a fuel gauge: higher ratios mean more protection against bad loans or market shocks and lower chances of forced capital raises or regulatory action.

Allowance for credit losses financial

"The allowance for credit losses on loans totaled $156.8 million, or 1.13% of total loans at March 31, 2026, compared to $153.3 million, or 1.08% of total loans at December 31, 2025."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

Net interest margin financial

"Mechanics’ net interest margin increased from 3.50% (2) to 3.61% primarily due to lower cost of deposits from Fed rate cuts and runoff of higher cost certificates of deposit."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

purchased seasoned loans financial

"This new standard ... requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses."

Purchased seasoned loans are existing loans that an investor buys after they have been outstanding for some time and have a track record of payments. Like buying a used car with a known service history, these loans give buyers clearer information about how likely borrowers are to keep paying, which helps investors estimate future cash flow, potential losses, and the returns they can expect.

Offering Details

earnings_snapshot

Offering

Offering Type earnings_snapshot

Understanding 8-K Material Events →

04/30/2026 - 06:01 AM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_______________________________

FORM 8-K

_______________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 30, 2026

________________________________

MECHANICS BANCORP

________________________________

(Exact name of registrant as specified in its charter)

Washington

001-35424

91-0186600

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

1111 Civic Drive, Walnut Creek, CA 94596

(Address of principal executive offices) (Zip Code)

(925) 482-8000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Class A Common Stock, No Par Value

MCHB

The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.


			Emerging growth company ☐

			If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition

On April 30, 2026, Mechanics Bancorp issued a press release reporting results of operations for the first quarter of 2026. A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

Mechanics Bancorp is hereby furnishing a first quarter of 2026 slide presentation that executive management intends to use in meetings with institutional investors and industry analysts, including in a webcast on April 30, 2026, at 11:00 a.m. (eastern time). The slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and will be available on Mechanics Bancorp's investor relations web site at http://ir.mechanicsbank.com.

In accordance with General Instruction B.2 of Form 8-K, the information contained in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits


Exhibit 99.1			Earnings Release dated April 30, 2026.
Exhibit 99.2			Investor Presentation, First Quarter 2026.
Exhibit 104			Cover Page Interactive Data File (embedded within with Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: April 30, 2026


			MECHANICS BANCORP

			By:						/s/ Nathan Duda
									Nathan Duda
									Executive Vice President and Chief Financial Officer

Mechanics Bancorp Reports First Quarter 2026 Results

First Quarter Highlights

$21.4 billion

Total Assets

$44.1 million

Net Income

13.91%

CET1 Ratio (1)

$12.61

Book Value Per Share

$7.53

Tangible Book Value Per Share (2)

Walnut Creek, CA – April 30, 2026 – (BUSINESS WIRE) – Mechanics Bancorp (Nasdaq: MCHB) (“Mechanics” or the “Company”), the financial holding company of Mechanics Bank, today announced its financial results for the quarter ended March 31, 2026. Mechanics reported net income of $44.1 million, or $0.19 per diluted share (3), for the first quarter of 2026, compared to $111.2 million, or $0.48 per diluted share, for the fourth quarter of 2025.(4)

First Quarter 2026 Highlights:

•Total assets of $21.4 billion at March 31, 2026, compared with $22.4 billion at December 31, 2025.

•Total loans of $13.9 billion at March 31, 2026, compared with $14.2 billion at December 31, 2025.

•Loans-to-deposits ratio of 76% at March 31, 2026, compared with 75% at December 31, 2025.

•Total deposits of $18.2 billion at March 31, 2026, compared with $19.0 billion at December 31, 2025, and noninterest-bearing deposits of $6.5 billion at March 31, 2026, compared with $6.7 billion at December 31, 2025.

•Total cost of deposits was 1.28% for the first quarter of 2026 and 1.43% for the fourth quarter of 2025.

•Strong capital ratios (1), including an estimated 16.15% Total risk-based capital ratio, 13.91% Tier 1 capital ratio, 13.91% CET1 capital ratio and 8.66% Tier 1 leverage ratio at March 31, 2026.

•Allowance for credit losses (“ACL”) to total loans of 1.13%, up from 1.08% at the prior quarter-end.

•Non-recurring acquisition and integration costs of $4.8 million in the quarter, compared to $3.5 million in the prior quarter.

(1)Regulatory capital ratios at March 31, 2026 are preliminary.

(2)Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below.

(3)Unless otherwise specified, refers to diluted earnings per share for Class A common stock.

(4)Mechanics’ financial results for the fourth quarter of 2025 were recast due to the adoption of new accounting guidance for certain loans acquired in the HomeStreet merger. Refer to “Adoption of Purchased Seasoned Loans Accounting Standard” for additional discussion.

C.J. Johnson, President and CEO of Mechanics, said, “We had a productive first quarter of 2026 and I’m happy to report we successfully converted all Legacy HomeStreet customers onto Mechanics Bank’s core banking platform during the final week of March. This was a major milestone that was achieved thanks to a tremendous amount of planning and hard work from all our employees. We will substantially complete our merger integration during the second quarter and as a result expect to realize significant additional expense synergies moving forward.”

Nathan Duda, CFO of Mechanics, added, “Our reported net income of $44.1 million for the first quarter was impacted by several notable items that do not reflect the underlying performance of the franchise. These included $6.5 million of pre‑tax provision expense related to qualitative factor adjustments arising from geopolitical uncertainty, $4.8 million of merger‑related expenses, and a $1.7 million remeasurement of deferred tax assets.”

Presentation of Results – HomeStreet Bank Merger

On September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics’ financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank’s historical financial results on a standalone basis and results of the combined company beginning September 2, 2025. In addition, for periods prior to September 2, 2025, the number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. The estimates of fair value were recorded based on valuations as of the merger date. These estimates are considered preliminary as of March 31, 2026, are subject to change for up to one year after the merger date, and any changes could be material.

Adoption of Purchased Seasoned Loans Accounting Standard

The Company early adopted Accounting Standards Update (“ASU”) 2025-08, “Financial Instruments–Credit Losses (Topic 326): Purchased Loans,” during the fourth quarter of 2025. This new standard, which the Company elected to early adopt as of January 1, 2025, requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses (gross-up approach). As a result, for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter of 2025, and recorded it as part of the acquired loans initial amortized cost basis. Required disclosures regarding the impact of the adoption were presented when the Company filed its annual report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its quarterly report on Form 10-Q for the quarter ended September 30, 2026.

The impact of the adoption is reflected in the respective comparative prior period results presented in this earnings release for the fourth quarter of 2025 and as of September 30, 2025.

INCOME STATEMENT HIGHLIGHTS

Summary Income Statement


	Quarter Ended
(in thousands)	March 31, 2026		December 31, 2025		March 31, 2025

Total interest income (1)	$	241,936	$	256,655	$	173,585
Total interest expense	62,891		73,673		45,131
Net interest income (1)	179,045		182,982		128,454
Provision (reversal of provision) for credit losses on loans (1)	7,593		(1,908)		(3,752)
Provision (reversal of provision) for credit losses on unfunded lending commitments	174		(1,316)		94

Total provision (reversal of provision) for credit losses (1)	7,767		(3,224)		(3,658)

Bargain purchase gain	—		55,097		—
Other noninterest income	21,020		23,424		14,981
Total noninterest income	21,020		78,521		14,981











Acquisition and integration costs	4,794		3,507		350
Other noninterest expense	125,633		126,003		85,288
Total noninterest expense	130,427		129,510		85,638
Income before income tax expense (1)	61,871		135,217		61,455
Income tax expense (1)	17,781		24,030		17,664
Net income (1)	$	44,090	$	111,187	$	43,791

(1)Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

Net Interest Income

Net interest income in the first quarter of 2026 was $3.9 million lower than the fourth quarter of 2025 primarily as a result of a decrease in average interest earning assets of $622.1 million, partially offset by lower interest expense on certificates of deposit. Mechanics’ net interest margin increased from 3.50% (2) to 3.61% primarily due to lower cost of deposits from Fed rate cuts and runoff of higher cost certificates of deposit.

(2)Net interest margin for the fourth quarter of 2025 has been adjusted to reflect the impact of adoption of ASU 2025-08.

Provision for Credit Losses

The provision for credit losses in the first quarter of 2026, which consists of the provision for credit losses on loans and provision for unfunded commitments, was $7.8 million, compared to a reversal of provision of $3.2 million for the fourth quarter of 2025. Although net charge-offs were favorable and credit metrics remained strong, the provision in the first quarter of 2026 was driven primarily by an increase in provision of $6.5 million related to economic uncertainty and the potential impact of higher energy prices stemming from the conflict in the Middle East. The reversal of provision in the fourth quarter of 2025 was primarily due to lower loan balances due to repayments during the quarter.

Noninterest Income

Noninterest income in the first quarter of 2026 decreased from the fourth quarter of 2025 primarily due to the preliminary bargain purchase gain from the HomeStreet merger of $55.1 million in the fourth quarter of 2025.

Noninterest Expense

Noninterest expense increased $917 thousand in the first quarter of 2026 compared to the fourth quarter of 2025, primarily due to a slight increase in non-recurring acquisition and integration related costs recognized with the HomeStreet merger, which were $4.8 million in the first quarter of 2026 compared to $3.5 million in the fourth quarter of 2025.

Income Taxes

Our effective tax rate during the first quarter of 2026 was 28.7% as compared to 17.8% in the fourth quarter of 2025 and our federal statutory rate was 21.0%. The effective tax rate increased compared to the prior quarter as a result of a $1.7 million remeasurement of deferred tax assets. In addition, the bargain purchase gain was the primary reason for the low effective tax rate in the fourth quarter of 2025.

BALANCE SHEET HIGHLIGHTS

Selected Balance Sheet Items



(in thousands)	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025

Cash and cash equivalents	$	483,513	$	1,029,983	$	1,442,647	$	2,078,960	$	798,309
Trading securities	49,463		49,518		50,357		—		—
Securities available-for-sale	3,933,705		3,993,385		3,490,478		2,562,438		3,586,322
Securities held-to-maturity	1,313,520		1,336,632		1,363,636		1,391,211		1,416,914
Loans held for investment (before ACL) (1)	13,852,209		14,176,936		14,587,530		9,239,834		9,416,024
Total assets (1)	21,388,955		22,351,475		22,721,935		16,571,173		16,540,317

Noninterest-bearing demand deposits	$	6,511,998	$	6,744,082	$	6,748,479	$	5,453,890	$	5,495,994
Total deposits	18,242,769		19,024,997		19,452,819		13,968,863		13,986,226
Long-term debt	128,815		192,014		190,123		—		—
Total liabilities	18,597,563		19,489,100		19,934,686		14,154,556		14,166,227
Total shareholders’ equity (1)	2,791,392		2,862,375		2,787,249		2,416,617		2,374,090

(1)Prior period comparative disclosures for September 30, 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

Investment Securities

Trading securities totaled $49.5 million at March 31, 2026 and December 31, 2025. Securities available-for-sale decreased by $59.7 million during the first quarter of 2026 to $3.9 billion at March 31, 2026, primarily due to paydowns and declines in fair values. Securities held-to-maturity decreased by $23.1 million in the first quarter of 2026, due to paydowns, and totaled $1.3 billion at March 31, 2026.

Loans

Total loans at March 31, 2026 were $13.9 billion, a decrease of $324.7 million from $14.2 billion at December 31, 2025, due primarily to loan repayments during the quarter.

Deposits

Total deposits decreased by $782.2 million during the first quarter of 2026 to $18.2 billion at March 31, 2026. The net decrease was due primarily to maturities of certificates of deposit acquired in the HomeStreet merger, as well as seasonal outflows in noninterest-bearing demand deposits.

Noninterest-bearing demand deposits totaled $6.5 billion and represented 36% of total deposits at March 31, 2026, compared to $6.7 billion, or 35% of total deposits, at December 31, 2025.

Borrowings

Total borrowings were $128.8 million at March 31, 2026, compared to $192.0 million at December 31, 2025. The decrease in the first quarter of 2026 was due to the redemption of our $65.0 million of Senior Notes on March 1, 2026.

Equity

During the first quarter of 2026, total shareholders’ equity decreased by $71.0 million to $2.8 billion and tangible common equity (1) decreased by $63.8 million to $1.7 billion at March 31, 2026. The decrease in total shareholders’ equity for the first quarter of 2026 primarily resulted from a net decrease in retained earnings in the first quarter of 2026 from net income, less dividends paid to common shareholders, and a decrease in accumulated other comprehensive income due to changes in fair value of securities available-for-sale.

At March 31, 2026, book value per common share decreased to $12.61, compared to $12.93 at December 31, 2025. At March 31, 2026, tangible book value per common share (1) decreased to $7.53, compared to $7.81 at December 31, 2025.

(1)Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below.

CAPITAL AND LIQUIDITY

Capital ratios remain strong with Total risk-based capital at 16.15% and a Tier 1 leverage ratio of 8.66% at March 31, 2026. The following table presents our regulatory capital ratios as of the dates indicated:



	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025

Mechanics Bancorp (1),(2)
Tier 1 leverage capital (to average assets)	8.66	%	8.65	%	10.34	%	n/a		n/a
Common equity Tier 1 capital (to risk-weighted assets)	13.91	%	14.09	%	13.42	%	n/a		n/a
Tier 1 risk-based capital (to risk-weighted assets)	13.91	%	14.09	%	13.42	%	n/a		n/a
Total risk-based capital (to risk-weighted assets)	16.15	%	16.27	%	15.57	%	n/a		n/a

Mechanics Bank (1)
Tier 1 leverage capital (to average assets)	9.31	%	9.58	%	11.46	%	10.16	%	9.91	%
Common equity Tier 1 capital (to risk-weighted assets)	14.96	%	15.59	%	14.87	%	18.27	%	16.89	%
Tier 1 risk-based capital (to risk-weighted assets)	14.96	%	15.59	%	14.87	%	18.27	%	16.89	%
Total risk-based capital (to risk-weighted assets)	16.21	%	16.81	%	16.13	%	19.10	%	17.77	%

(1)On September 2, 2025, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the merger and becoming a wholly-owned subsidiary of Mechanics Bancorp. As a result, for periods prior to September 30, 2025, regulatory capital ratios are only presented for Mechanics Bank.

(2)Regulatory capital ratios at March 31, 2026 are preliminary.

At March 31, 2026, Mechanics had available borrowing capacity of $6.1 billion from the FHLB, $4.2 billion from the Federal Reserve and $5.1 billion under borrowing lines established with other financial institutions.

CREDIT QUALITY

Asset Quality Information and Ratios


(dollars in thousands)	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025

Delinquent loans held for investment:
30-89 days past due (1)	$	43,556		$	58,459		$	55,899		$	106,710		$	100,225
90+ days past due	33,447			34,686			38,316			10,660			5,248
Total delinquent loans	$	77,003		$	93,145		$	94,215		$	117,370		$	105,473
Total delinquent loans to loans held for investment	0.56		%	0.66		%	0.65		%	1.27		%	1.12		%

Nonperforming assets:
Nonaccrual loans	$	44,379		$	42,863		$	60,586		$	18,606		$	9,905
90+ days past due and accruing	4,098			3,943			2,653			717			211
Total nonperforming loans	48,477			46,806			63,239			19,323			10,116
Foreclosed assets	4,658			4,990			1,675			—			13,400
Total nonperforming assets	$	53,135		$	51,796		$	64,914		$	19,323		$	23,516

Allowance for credit losses on loans	$	156,796		$	153,319		$	168,959		$	68,334		$	75,515
Allowance for credit losses on loans to total loans held for investment	1.13		%	1.08		%	1.16		%	0.74		%	0.80		%
Allowance for credit losses on loans to nonaccrual loans	353.31		%	357.70		%	278.88		%	367.27		%	762.38		%
Nonaccrual loans to total loans held for investment	0.32		%	0.30		%	0.42		%	0.20		%	0.11		%
Nonperforming assets to total assets	0.25		%	0.23		%	0.29		%	0.12		%	0.14		%

(1)Prior period comparative disclosures for September 30, 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

At March 31, 2026, total delinquent loans were $77.0 million, compared to $93.1 million at December 31, 2025. The decrease was primarily due to improvement in auto loan portfolio delinquencies. Total delinquent loans as a percentage of total loans were 0.56% at March 31, 2026, as compared to 0.66% at December 31, 2025.

At March 31, 2026, nonperforming assets were $53.1 million, compared to $51.8 million at December 31, 2025. The slight increase was primarily due to a commercial real estate loan that was modified and was placed on nonaccrual status. Nonperforming assets as a percentage of total assets increased to 0.25% at March 31, 2026, as compared to 0.23% at December 31, 2025.

Allowance for Credit Losses


	Quarter Ended
(dollars in thousands)	March 31, 2026			December 31, 2025			March 31, 2025

Allowance for credit losses on loans:
Beginning balance	$	153,319		$	168,959		$	88,558


Provision (reversal of provision) for credit losses (1)	7,593			(1,908)			(3,752)
Loans charged off	(7,205)			(17,052)			(12,217)
Recoveries	3,089			3,320			2,926
Ending balance	$	156,796		$	153,319		$	75,515

Allowance for credit losses on unfunded lending commitments:
Beginning balance	$	7,115		$	8,431		$	4,366

Provision (reversal of provision) for credit losses	174			(1,316)			94
Ending balance	$	7,289		$	7,115		$	4,460

Net charge-offs to average loans (2)	0.12		%	0.38		%	0.40		%

(1) Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08. As discussed in “Adoption of Purchased Seasoned Loans Accounting Standard,” for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter of 2025, and recorded it as part of the acquired loans initial amortized cost basis.

(2) Ratios are annualized.

The allowance for credit losses on loans totaled $156.8 million, or 1.13% of total loans at March 31, 2026, compared to $153.3 million, or 1.08% of total loans at December 31, 2025. The increase in allowance was the result of an increase in qualitative factors across loan types, with the greatest impact on commercial real estate loans due to the size of the portfolio. The qualitative factor increase was primarily driven by economic uncertainty and the potential impact of higher energy prices stemming from the conflict in the Middle East.

Conference Call

The Company will host a conference call and webcast to discuss its first quarter 2026 financial results at 11:00 a.m. Eastern Time (ET) on Thursday, April 30, 2026. Investors and analysts interested in participating in the call are invited to dial 1-833-461-5787 (international callers please dial 1-585-542-9983) approximately 10 minutes prior to the start of the call. The pin to access the call is 144685372. A live audio webcast of the conference call will be available on the Company’s website at https://ir.mechanicsbank.com. The earnings presentation for the call will also be available on the Company’s Investor Relations website prior to the call.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed through the News & Events tab of the Company’s website as well as through the webcast link: https://events.q4inc.com/attendee/144685372.

About Mechanics Bancorp

Mechanics Bancorp (NASDAQ: MCHB) is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service bank with $21.4 billion in assets as of March 31, 2026, and 166 branches across California, Oregon, Washington and Hawaii. Founded in 1905 to help families, businesses and communities prosper, Mechanics Bank offers a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services.

To learn more, visit www.MechanicsBank.com.

Cautionary Note

The information contained herein is preliminary and based on Company data available at the time of this earnings release. It speaks only as of the particular date or dates included in the earnings release. Except as required by law, Mechanics does not undertake an obligation to, and disclaims any duty to, update any of the information herein.

Forward-Looking Statements

This earnings release, including information incorporated by reference herein, contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). All statements, other than statements of historical fact, contained or incorporated by reference in this earnings release, including statements regarding our plans, objectives, expectations, strategies, beliefs, or future performance or events, are forward-looking statements. Generally, forward-looking statements include the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “look,” “may,” “optimistic,” “plan,” “potential,” “projection,” “should,” “will,” and “would” and similar expressions (or the negative of these terms), although not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates, and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this earnings release:

•substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events;

•failure to realize the anticipated benefits of the HomeStreet merger;

•our ability to effectively manage our expanded operations;

•negative developments and events impacting the financial services industry;

•the soundness of other financial institutions;

•our ability to maintain sufficient liquidity, or an increase in the cost of liquidity;

•unpredictable economic, market and business conditions;

•interest rate risk, and fluctuations in interest rates;

•inflationary pressures and rising prices;

•adverse changes in real estate market values;

•the impact of climate change, including indirectly through impacts on our customers;

•the adequacy of our allowances for credit losses for loans and debt securities;

•incurring losses in our loan portfolio despite strict adherence to our underwriting practices;

•fluctuations in our mortgage origination business based upon seasonal and other factors;

•our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn;

•the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans;

•the ability of our small- to medium-sized borrowers to weather adverse business developments;

•our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk;

•our ability to mitigate our exposure to interest rate risk;

•negative publicity regarding us, or financial institutions in general;

•environmental liability risk associated with our lending activities;

•our ability to manage risks associated with new lines of business, products, product enhancements and services;

•our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers;

•our ability to develop, implement and maintain an effective system of internal control over financial reporting;

•the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements;

•the potential that we may write off goodwill and other intangible assets resulting from business combinations;

•dependence on our management team;

•exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors;

•legal claims and litigation, including potential securities law liabilities;

•employee class action lawsuits or other legal proceedings;

•our ability to raise additional capital, if needed;

•competition from other financial institutions and financial service companies;

•regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities;

•extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income;

•our ability to comply with stringent capital requirements;

•the impact of federal and state regulators’ examination of our business;

•our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations;

•our reliance on dividends from Mechanics Bank;

•our ability to raise debt or capital to pay off our debts upon maturity;

•our level of indebtedness following the completion of the HomeStreet merger;

•increasing and continually evolving cybersecurity and other technological risks;

•our ability to adapt to rapid technological change;

•our ability to effectively implement new technological solutions or enhancements to existing systems or platforms;

•our ability to manage risks and challenges relating to the development and use of artificial intelligence;

•our dependence on our computer and communications systems;

•our ability to effectively manage and aggregate data;

•Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics Bancorp, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval;

•we are a “controlled company” within the meaning of the rules of Nasdaq and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards;

•future sales of shares by existing shareholders could cause our stock price to decline;

•our reliance on certain entities affiliated with the Ford Financial Funds for services;

•reduced disclosure requirements as a smaller reporting company; and

•certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock.

A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives is also contained in Item 1A “Risk Factors” included in our 2025 Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission (the “SEC”). We strongly recommend readers review those disclosures in conjunction with the discussions herein. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and should not be relied upon as a prediction of actual results or future events.

Forward-looking statements in this earnings release are based on management’s expectations at the time such statements are made and speak only as of the date made. We do not assume any obligation or undertake to update any forward-looking statements after the date of this earnings release as a result of new information,

future events or developments, except as required by federal securities or other applicable laws, although we may do so from time to time.

All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that we currently deem immaterial may become material, and it is impossible for us to predict these events or how they may affect us.

Investor Relations Inquiries:


Contact:						Mechanics Bancorp
						Nathan Duda
						Executive Vice President and Chief Financial Officer

						ir@mechanicsbank.com

CONSOLIDATED BALANCE SHEETS (UNAUDITED)



(dollars in thousands)	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025

ASSETS
Cash and cash equivalents	$	483,513	$	1,029,983	$	1,442,647	$	2,078,960	$	798,309
Trading securities	49,463		49,518		50,357		—		—
Securities available-for-sale	3,933,705		3,993,385		3,490,478		2,562,438		3,586,322
Securities held-to-maturity	1,313,520		1,336,632		1,363,636		1,391,211		1,416,914
Loans held for sale	4,692		5,967		54,985		415		219
Loan receivables (1)	13,852,209		14,176,936		14,587,530		9,239,834		9,416,024
Allowance for credit losses on loans	(156,796)		(153,319)		(168,959)		(68,334)		(75,515)
Net loan receivables (1)	13,695,413		14,023,617		14,418,571		9,171,500		9,340,509
Mortgage servicing rights	84,000		85,832		88,595		—		—
Other real estate owned	4,658		4,990		1,675		—		13,400
Federal Home Loan Bank stock, at cost	17,289		17,292		17,294		17,250		17,250
Premises and equipment, net	143,157		143,895		143,917		114,715		115,509
Bank-owned life insurance	171,674		170,339		169,163		84,786		84,300
Goodwill	843,305		843,305		843,305		843,305		843,305
Other intangible assets, net	205,269		212,491		143,264		33,309		35,975
Right-of-use asset	78,046		82,076		85,657		56,696		56,268
Interest receivable and other assets (1)	361,251		352,153		408,391		216,588		232,037
TOTAL ASSETS (1)	$	21,388,955	$	22,351,475	$	22,721,935	$	16,571,173	$	16,540,317
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Noninterest-bearing demand deposits	$	6,511,998	$	6,744,082	$	6,748,479	$	5,453,890	$	5,495,994
Interest-bearing transaction accounts	8,222,964		8,128,832		7,918,670		6,359,590		6,357,909
Savings and time deposits	3,507,807		4,152,083		4,785,670		2,155,383		2,132,323
Total deposits	18,242,769		19,024,997		19,452,819		13,968,863		13,986,226

Long-term debt	128,815		192,014		190,123		—		—
Operating lease liability	82,403		86,794		90,796		59,233		58,914
Interest payable and other liabilities	143,576		185,295		200,948		126,460		121,087
TOTAL LIABILITIES	18,597,563		19,489,100		19,934,686		14,154,556		14,166,227
SHAREHOLDERS’ EQUITY
Common stock	2,402,968		2,402,193		2,401,989		2,122,374		2,122,117
Retained earnings (1)	407,908		456,695		394,069		325,793		283,308
Accumulated other comprehensive income (loss), net of tax	(19,484)		3,487		(8,809)		(31,550)		(31,335)
TOTAL SHAREHOLDERS’ EQUITY (1)	2,791,392		2,862,375		2,787,249		2,416,617		2,374,090
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (1)	$	21,388,955	$	22,351,475	$	22,721,935	$	16,571,173	$	16,540,317

Common shares outstanding-Class A and B	221,400,590		221,305,009		221,203,135		202,015,832		201,999,328

(1)Prior period comparative disclosures for September 30, 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

CONSOLIDATED INCOME STATEMENTS (UNAUDITED)


	Quarter Ended
(dollars in thousands, except per share amounts)	March 31, 2026		December 31, 2025		March 31, 2025

INTEREST INCOME
Loans interest and fees (1)	$	181,190	$	194,108	$	117,792
Investment securities	53,074		49,529		47,585
Interest-bearing cash and other	7,672		13,018		8,208
Total interest income (1)	241,936		256,655		173,585
INTEREST EXPENSE
Deposits	58,323		68,967		45,131
Borrowed funds	228		—		—
Long-term debt	4,340		4,706		—
Total interest expense	62,891		73,673		45,131
Net interest income (1)	179,045		182,982		128,454
Provision (reversal of provision) for credit losses on loans (1)	7,593		(1,908)		(3,752)
Provision (reversal of provision) for credit losses on unfunded lending commitments	174		(1,316)		94
Net interest income after provision for credit losses (1)	171,278		186,206		132,112
NONINTEREST INCOME
Service charges on deposit accounts	6,043		6,360		5,494
Trust fees and commissions	3,070		3,565		3,119
ATM network fee income	3,904		4,137		2,888

Loan servicing income	1,927		1,873		177
Net gain on sales and calls of investment securities	52		276		—
Income from bank-owned life insurance	1,165		1,699		527
Bargain purchase gain	—		55,097		—
Other	4,859		5,514		2,776
Total noninterest income	21,020		78,521		14,981
NONINTEREST EXPENSE
Salaries and employee benefits	68,550		68,566		48,851
Occupancy	12,429		11,967		7,972
Equipment	9,615		9,826		5,869
Professional services	6,071		6,816		4,916
FDIC assessments and regulatory fees	2,990		1,851		2,213
Amortization of intangible assets	7,222		7,479		2,738
Data processing	3,873		4,876		1,350
Loan related	3,506		3,802		1,577
Marketing and advertising	907		1,123		584
Other real estate owned related	384		(221)		2,684
Acquisition and integration costs	4,794		3,507		350
Other	10,086		9,918		6,534
Total noninterest expense	130,427		129,510		85,638
Income before income tax expense (1)	61,871		135,217		61,455
INCOME TAX EXPENSE (1)	17,781		24,030		17,664
NET INCOME (1)	$	44,090	$	111,187	$	43,791

Basic earnings per share (1)
Class A common stock	$	0.19	$	0.48	$	0.21
Class B common stock	$	1.91	$	4.80	$	2.07
Diluted earnings per share (1)
Class A common stock	$	0.19	$	0.48	$	0.21
Class B common stock	$	1.91	$	4.80	$	2.07
Basic weighted-average shares outstanding
Class A common stock	221,047,803		220,865,980		200,884,880
Class B common stock	1,114,448		1,114,448		1,114,448
Diluted weighted-average shares outstanding
Class A common stock	221,203,293		221,095,493		200,944,300
Class B common stock	1,114,448		1,114,448		1,114,448

(1)Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

LOANS HELD FOR INVESTMENT (1)


(in thousands)	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025

Commercial and industrial	$	460,081	$	482,170	$	550,176	$	280,551	$	352,267
Commercial real estate
Multifamily	5,291,597		5,355,252		5,450,206		2,826,750		2,833,328
Non-owner occupied	1,711,611		1,740,277		1,866,119		1,551,617		1,618,001
Owner occupied	586,698		689,079		710,638		323,419		341,446
Construction and land development	399,546		493,992		538,754		135,013		119,089
Residential real estate	4,017,120		3,970,803		3,914,675		2,438,271		2,336,268
Auto	639,825		791,012		954,617		1,147,967		1,363,084
Other consumer	745,731		654,351		602,345		536,246		452,541


Total LHFI	$	13,852,209	$	14,176,936	$	14,587,530	$	9,239,834	$	9,416,024

(1)Prior period comparative disclosures for September 30, 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

COMPOSITION OF DEPOSITS


(in thousands)	March 31, 2026		December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025

Deposits by product:
Noninterest-bearing demand deposits	$	6,511,998	$	6,744,082	$	6,748,479	$	5,453,890	$	5,495,994
Interest-bearing:
Interest-bearing demand deposits	1,767,403		1,878,468		1,733,215		1,331,785		1,384,081
Savings	1,363,137		1,367,475		1,398,430		1,173,943		1,201,988
Money market	6,455,561		6,250,364		6,185,455		5,027,805		4,973,828
Certificates of deposit	2,144,670		2,784,608		3,387,240		981,440		930,335
Total interest-bearing deposits	11,730,771		12,280,915		12,704,340		8,514,973		8,490,232
Total deposits	$	18,242,769	$	19,024,997	$	19,452,819	$	13,968,863	$	13,986,226

SUMMARY FINANCIAL DATA


	Quarter Ended
	March 31, 2026		December 31, 2025		March 31, 2025











Select performance ratios: (1)
Return on average equity (2)	6.25	%	15.80	%	7.61	%
Return on average tangible equity (2) , (3)	11.07	%	25.59	%	12.76	%
Return on average assets (2)	0.82	%	1.97	%	1.08	%
Efficiency ratio	65.2	%	49.5	%	59.7	%
Efficiency ratio (non-GAAP) (3)	61.6	%	46.7	%	57.8	%
Net interest margin (2)	3.61	%	3.50	%	3.45	%


	As of
	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025










Other data:


Book value per share (4)	$	12.61		$	12.93		$	12.60		$	11.96		$	11.75
Tangible book value per share (3), (4)	7.53			7.81			7.79			7.26			7.05
Common equity ratio (4)	13.05		%	12.81		%	12.27		%	14.58		%	14.35		%
Tangible common equity ratio (3), (4)	8.57		%	8.48		%	8.28		%	9.81		%	9.54		%

Loans to deposit ratio (4)	75.93		%	74.52		%	74.99		%	66.15		%	67.32		%
Full time equivalent employees	1,890			1,921			2,036			1,303			1,426

(1)Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

(2)Ratios are annualized.

(3)Return on average tangible equity, efficiency ratio (excluding the impact of intangible amortization), tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. For a reconciliation of these measures to the comparable GAAP financial measure or the computation of the measure, see “Non-GAAP Financial Measures and Reconciliations” below.

(4)Prior period comparative disclosures for September 30, 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

NET INTEREST MARGIN


	Quarter Ended
	March 31, 2026						December 31, 2025						March 31, 2025
(dollars in thousands)	Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)		Average Balance		Interest		Average Yield/ Cost (1)

Assets:
Interest-earning assets:
Cash and cash equivalents	$	549,799	$	4,162	3.07	%	$	1,094,743	$	10,262	3.72	%	$	734,534	$	7,187	3.97	%
Investment securities	5,425,705		53,074		3.97	%	5,090,812		49,529		3.86	%	4,781,791		47,585		4.04	%
Loans (2), (3)	14,002,665		181,190		5.25	%	14,412,244		194,108		5.34	%	9,491,710		117,792		5.03	%
FHLB stock and other investments	146,776		3,510		9.70	%	149,275		2,756		7.33	%	101,230		1,021		4.09	%
Total interest-earning assets (3)	20,124,945		241,936		4.88	%	20,747,074		256,655		4.91	%	15,109,265		173,585		4.66	%
Noninterest-earning assets	1,697,660						1,686,765						1,300,110
Total assets	$	21,822,605					$	22,433,839					$	16,409,375
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Demand deposits	$	1,804,524	$	2,176	0.49	%	$	1,789,672	$	2,815	0.62	%	$	1,403,053	$	1,299	0.38	%
Money market and savings	7,740,958		39,060		2.05	%	7,637,068		40,636		2.11	%	6,051,918		38,140		2.56	%
Certificates of deposit	2,472,421		17,087		2.80	%	3,089,704		25,516		3.28	%	939,273		5,692		2.46	%
Total	12,017,903		58,323		1.97	%	12,516,444		68,967		2.19	%	8,394,244		45,131		2.18	%
Borrowings:
Borrowings	24,667		228		3.75	%	—		—		—	%	—		—		—	%
Long-term debt	170,987		4,340		10.29	%	190,783		4,706		9.79	%	—		—		—	%
Total interest-bearing liabilities	12,213,557		62,891		2.09	%	12,707,227		73,673		2.30	%	8,394,244		45,131		2.18	%
Noninterest-bearing liabilities:
Demand deposits (4)	6,448,090						6,634,915						5,442,140
Other liabilities	300,464						299,387						238,223
Total liabilities	18,962,111						19,641,529						14,074,607
Shareholders’ equity	2,860,494						2,792,310						2,334,768
Total liabilities and shareholders’ equity	$	21,822,605					$	22,433,839					$	16,409,375
Net interest income (3)			$	179,045					$	182,982					$	128,454
Net interest rate spread (3)					2.79	%					2.61	%					2.48	%
Net interest margin (3)					3.61	%					3.50	%					3.45	%

(1)Ratios are annualized.

(2)Includes loans held for sale.

(3)Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

(4)Cost of all deposits, including noninterest-bearing demand deposits, was 1.28%, 1.43% and 1.32% for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

This document contains non-GAAP financial measures of our financial performance, including return on average tangible equity, efficiency ratio (excluding the impact of intangible amortization), tangible book value per share and tangible common equity ratio. We believe that these non-GAAP financial measures provide useful information because they are used by management to evaluate our operating performance, without the impact of goodwill and other intangible assets. However, these financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative to, its GAAP results. The non-GAAP financial measures Mechanics presents may differ from similarly captioned measures presented by other companies. The following tables present the calculations of our non-GAAP financial measures.


(dollars in thousands, except per share amounts)		Quarter Ended
Return on Average Equity and Return on Average Tangible Equity (1)	Ref.	March 31, 2026			December 31, 2025			March 31, 2025

Net income	(a)	$	44,090		$	111,187		$	43,791
Add: intangibles amortization, net of tax (2)		5,254			5,442			1,958
Net income, excluding the impact of intangible amortization, net of tax	(b)	$	49,344		$	116,629		$	45,749

Average shareholders’ equity	(c)	$	2,860,494		$	2,792,310		$	2,334,768
Less: average goodwill and other intangible assets		1,052,479			984,105			880,812
Average tangible shareholders’ equity	(d)	$	1,808,015		$	1,808,205		$	1,453,956

Return on average equity (3)	(a) / (c)	6.25		%	15.80		%	7.61		%
Return on average tangible equity (non-GAAP) (3)	(b) / (d)	11.07		%	25.59		%	12.76		%




		Quarter Ended
Efficiency Ratio (1)	Ref.	March 31, 2026			December 31, 2025			March 31, 2025

Noninterest expense	(e)	$	130,427		$	129,510		$	85,638
Less: intangibles amortization		7,222			7,479			2,738
Noninterest expense, excluding the impact of intangible amortization	(f)	123,205			122,031			82,900
Net interest income	(g)	179,045			182,982			128,454
Noninterest income	(h)	21,020			78,521			14,981
Efficiency ratio	(e) / (g+h)	65.2		%	49.5		%	59.7		%
Efficiency ratio (non-GAAP)	(f) / (g+h)	61.6		%	46.7		%	57.8		%

(1)Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

(2)Estimated statutory tax rate of 27.25%, 27.25% and 28.50% for the quarter ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

(3)Ratios are annualized.


(dollars in thousands, except per share amounts)		As of
Book Value per Share and Tangible Book Value per Share (4)	Ref.	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025

Total shareholders’ equity	(i)	$	2,791,392		$	2,862,375		$	2,787,249		$	2,416,617		$	2,374,090
Less: goodwill and other intangible assets		1,048,574			1,055,796			986,569			876,614			879,280
Total tangible shareholders’ equity	(j)	$	1,742,818		$	1,806,579		$	1,800,680		$	1,540,003		$	1,494,810

Common shares outstanding-Class A and B	(k)	221,400,590			221,305,009			221,203,135			202,015,832			201,999,328

Common shares outstanding-Class A		220,286,142			220,190,561			220,088,687			200,901,384			200,884,880
Common shares outstanding-Class B-adjusted		11,144,480			11,144,480			11,144,480			11,144,480			11,144,480
Shares outstanding at period end-adjusted (5)	(l)	231,430,622			231,335,041			231,233,167			212,045,864			212,029,360

Book value per share	(i) / (k)	$	12.61		$	12.93		$	12.60		$	11.96		$	11.75


Tangible book value per share (non-GAAP)	(j) / (l)	$	7.53		$	7.81		$	7.79		$	7.26		$	7.05



		As of
Common Equity Ratio and Tangible Common Equity Ratio (4)	Ref.	March 31, 2026			December 31, 2025			September 30, 2025			June 30, 2025			March 31, 2025

Total shareholders’ equity	(m)	$	2,791,392		$	2,862,375		$	2,787,249		$	2,416,617		$	2,374,090
Less: goodwill and other intangible assets		1,048,574			1,055,796			986,569			876,614			879,280
Total tangible shareholders’ equity	(n)	$	1,742,818		$	1,806,579		$	1,800,680		$	1,540,003		$	1,494,810

Total assets	(o)	$	21,388,955		$	22,351,475		$	22,721,935		$	16,571,173		$	16,540,317
Less: goodwill and other intangible assets		1,048,574			1,055,796			986,569			876,614			879,280
Total tangible assets	(p)	$	20,340,381		$	21,295,679		$	21,735,366		$	15,694,559		$	15,661,037

Common equity ratio	(m) / (o)	13.05		%	12.81		%	12.27		%	14.58		%	14.35		%
Tangible common equity ratio (non-GAAP)	(n) / (p)	8.57		%	8.48		%	8.28		%	9.81		%	9.54		%

(4)Prior period comparative disclosures for September 30, 2025 have been adjusted to reflect the impact of adoption of ASU 2025-08.

(5)Includes 11,144,480 Class A Shares issuable upon the conversion of 1,114,448 Class B Shares outstanding. Class B Shares also are treated as if such share had been converted into ten Class A Shares for purposes of calculating the economic rights of the Class B Shares, including upon liquidation of the Company or the declaration of dividends or distributions by the Company.

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 First Quarter Earnings Presentation April 30, 2026 Seattle, WA San Francisco, CA Los Angeles, CA 1

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 statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such statements. Such forward-looking statements include, but are not limited to, statements concerning such things as the Company’s outlook, business strategy, financial condition, efforts to make strategic acquisitions, integration activities and outlook, liquidity and sources of funding, market trends, operations and business, stock repurchases, dividend payments, and the Company’s other plans, objectives, strategies, expectations and intentions and other statements that are not statements of historical fact, and may be identified by words such as “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “projects,” “seeks,” “should,” “track,” “target,” “view” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events; failure to realize the anticipated benefits of the HomeStreet merger; our ability to effectively manage our expanded operations; negative developments and events impacting the financial services industry; the soundness of other financial institutions; our ability to maintain sufficient liquidity, or an increase in the cost of liquidity; unpredictable economic, market and business conditions; interest rate risk, and fluctuations in interest rates; inflationary pressures and rising prices; adverse changes in real estate market values; the impact of climate change, including indirectly through impacts on our customers; the adequacy of our allowances for credit losses for loans and debt securities; incurring losses in our loan portfolio despite strict adherence to our underwriting practices; fluctuations in our mortgage origination business based upon seasonal and other factors; our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn; the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans; the ability of our small- to medium-sized borrowers to weather adverse business developments; our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk; our ability to mitigate our exposure to interest rate risk; negative publicity regarding us, or financial institutions in general; environmental liability risk associated with our lending activities; our ability to manage risks associated with new lines of business, products, product enhancements and services; our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers; our ability to develop, implement and maintain an effective system of internal control over financial reporting; the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements; the potential that we may write off goodwill and other intangible assets resulting from business combinations; dependence on our management team; exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors; legal claims and litigation, including potential securities law liabilities; employee class action lawsuits or other legal proceedings; our ability to raise additional capital, if needed; competition from other financial institutions and financial service companies; regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities; extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income; our ability to comply with stringent capital requirements; the impact of federal and state regulators’ examination of our business; our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations; our reliance on dividends from Mechanics Bank; our ability to raise debt or capital to pay off our debts upon maturity; our level of indebtedness following the completion of the HomeStreet merger; increasing and continually evolving cybersecurity and other technological risks; our ability to adapt to rapid technological change; our ability to effectively implement new technological solutions or enhancements to existing systems or platforms; our ability to manage risks and challenges relating to the development and use of artificial intelligence; our dependence on our computer and communications systems; our ability to effectively manage and aggregate data; Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval; we are a “controlled company” within the meaning of the rules of Nasdaq, and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards; future sales of shares by existing shareholders could cause our stock price to decline; our reliance on certain entities affiliated with the Ford Financial Funds for services; reduced disclosure requirements as a smaller reporting company; and certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock. Disclaimer 2

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 Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q and other reports that we have filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement. The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Except as required by law, Mechanics does not undertake an obligation to, and disclaims any duty to, update any of the information herein. Included in this presentation are certain non-GAAP financial measures, such as Core Net Income, Return on Average Equity, Return on Average Tangible Equity, Efficiency Ratio, Book Value and Tangible Book Value per Share and Common Equity Ratio and Tangible Common Equity Ratio, which are designed to complement the financial information presented in accordance with U.S. GAAP as management believes such measures are useful to investors to assess use of equity and financial performance. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Financial Measures and Reconciliations” section of the appendix of this presentation for additional detail including reconciliations of non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP. Presentation of Results – HomeStreet Bank Merger On September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics’ financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank’s historical financial results on a standalone basis. In addition, Mechanics’ reported financial results reflect Mechanics Bank’s financial results on a standalone basis until the closing of the merger on September 2, 2025 and results of the combined company beginning September 2, 2025. For periods prior to September 2, 2025, the number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. Adoption of Purchased Seasoned Loans Accounting Standard The Company early adopted Accounting Standards Update (“ASU”) 2025-08, “Financial Instruments–Credit Losses (Topic 326): Purchased Loans,” during the fourth quarter of 2025. This new standard, which the Company elected to early adopt as of January 1, 2025, requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses (gross-up approach). As a result, for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter of 2025, and recorded it as part of the acquired loans initial amortized cost basis. Required disclosures regarding the impact of the adoption were presented when the Company filed its Annual Report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its Quarterly Report on Form 10-Q for the quarter ended September 30, 2026. The impact of the adoption is reflected in the respective comparative prior period results presented in this presentation for the third and fourth quarter of 2025. General Note The sum of the amounts in tables and charts may not equal the total amounts presented due to rounding. 3

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 1st Quarter 2026 Financial Highlights 4 1 Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” in the back of this presentation 2 Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of the adoption of ASU 2025-08 Condensed Balance Sheet ($ in millions, except per share data) Q1 '26 Q4 '25 Q1 '25 Cash & Investments 5,780$ 6,410$ 5,802$ Net Loans, including HFS 13,700 14,030 9,341 Goodwill & Intangible Assets 1,049 1,056 879 Other Assets 860 857 519 Total Assets 21,389$ 22,351$ 16,540$ Total Deposits 18,243$ 19,025$ 13,986$ Senior Debt, Sub Debt, and TRUPs 129 192 - Other Liabilities 226 272 180 Total Shareholders' Equity 2,791 2,862 2,374 Total Liabilities & Equity 21,389$ 22,351$ 16,540$ Book value per share 12.61$ 12.93$ 11.75$ Tangible book value per share 1 7.53$ 7.81$ 7.05$ Condensed Income Statement (in thousands, except per share data) Q1 '26 Q4 '25 Q1 '25 Net Interest Income 2 179,045$ 182,982$ 128,454$ Provision / (Reversal of Provision) 2 7,767 (3,225) (3,658) Non-Interest Income 21,020 78,520 14,981 Non-Interest Expense 130,427 129,510 85,638 Pre-Tax Income 2 61,871$ 135,217$ 61,455$ Taxes 2 17,781 24,029 17,664 Net Income 2 44,090$ 111,188$ 43,791$ Diluted weighted-average shares outstanding * 221,203 221,095 200,944 Diluted earnings per share * 2 0.19$ 0.48$ 0.21$ * Class A Financial Ratios Q1 '26 Q4 '25 Q1 '25 ROAA 2 0.82% 1.97% 1.08% ROATCE 1 2 11.1% 25.6% 12.8% Net Interest Margin 2 3.61% 3.50% 3.45% Efficiency Ratio 1 2 61.6% 46.7% 57.8% Ending FTE 1,890 1,921 1,426 Loans to Deposits 76% 75% 67% ACL / Total Loans 1.13% 1.08% 0.80% Tier 1 Leverage Ratio 8.7% 8.7% 9.9% 1st Quarter 2026 Financial Highlights ▪ Mechanics Bancorp reported net income of $44.1mm in Q1’26 ▪ Fully diluted EPS of $0.19, BVPS of $12.61 and TBVPS of $7.531 ▪ ROAA of 0.82% and ROATCE of 11.1%1 ▪ $0.40 per share of dividends paid in Q1’26 (Class A) ▪ Q1’26 had several non-core expenses: ▪ ~$6.5mm of pre-tax provision from qualitative CECL factor adjustments related to geopolitical uncertainty ▪ ~$4.8mm of merger expenses ▪ ~$1.7mm of tax expense due to DTA re-measurement to a lower effective tax rate ▪ $53.8mm of core net income (Core ROAA of 1.00% and Core ROATCE of 13.2%)1 ▪ Total assets of $21.4bn, total gross loans of $13.9bn, total deposits of $18.2bn and tangible shareholder’s equity of $1.7bn1 ▪ Total deposits decreased $782mm in Q1’26, with $640mm of the decline driven by a deliberate reduction in high-cost HMST CDs ▪ $137mm of non-maturity deposit decrease driven by seasonal outflows of food and agricultural deposits ▪ Paid off $65mm of high-cost senior debt in March ▪ 13.9% CET1 ratio and 8.7% Tier 1 Leverage ratio ▪ 12bps of run-off auto NCOs in Q1’26; 0bps of non-auto NCOs ▪ ACL equal to 1.13% of total loans; 2.95x ACL / NPAs ▪ 1.28% cost of deposits in Q1’26 and 1.21% spot cost at 3/31/26 ▪ 3.61% NIM in Q1’26 (11bp increase) with 76% L/D ratio ▪ 348% CRE concentration ratio at 3/31/2026

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 ➢ We successfully converted all Legacy HomeStreet customers onto our core banking platform the final week of March ➢ Major milestone achieved thanks to a tremendous amount of planning and hard work from all our employees ➢ We will substantially complete our merger integration during the second quarter and expect to realize significant additional expense synergies moving forward (for example, we will not be paying two core providers, other redundant contracts will be terminated, and final staffing reductions can occur now that we are on a single core) ➢ We remain on track to deliver on our initial costs savings estimate of $82mm (~43% of Legacy HomeStreet’s 2024 NIE) and expect ~$430mm run-rate NIE (excluding CDI amortization) for Mechanics by Q4’26 ➢ Legacy HomeStreet CD runoff has been greater than initially anticipated and is now expected to be ~$1.4bn by the end of Q2’26 vs. ~$1.0bn original expectation; Legacy HomeStreet core deposit attrition has been minimal ➢ The $130mm sale of our Fannie Mae DUS business line to Fifth Third is now expected to close in the second quarter ➢ Specialized division focused on multifamily lending and servicing under the Fannie Mae DUS program with 23 employees, $1.8bn serviced for others and $26.0mm MSR as of 3/31/2026 ➢ The combination of earnings, a smaller balance sheet and the pending DUS business line sale creates significant excess capital, and we expect to pay a ~$0.70 per share dividend in Q2 (subject to regulatory and Board approval) ➢ Merger integration work is almost behind us and the buildouts of our Wealth, Commercial Banking and Treasury Sales teams are substantially complete. We are working to grow each of our core business lines across our West Coast footprint with a technology roadmap that is increasingly focused on leveraging AI tools to improve productivity ➢ We expect a relatively flat NIM for the next 2-3 quarters as auto loan runoff remains a drag. Our deposit costs will also flatten out as we no longer assume any Fed rate cuts. Our NIM should begin expanding again in early 2027 as the impact of auto fades, driven by Legacy Mechanics Bank earning asset repricing ➢ We project a ~17-18% ROATCE and ~1.3-1.4% ROAA in 2027 and beyond; $275 – $300mm of 2027E GAAP net income ➢ Lower earnings primarily due to (i) no rate cuts assumed vs. two cuts previously; (ii) ~$400mm lower high-cost CD balances; and (iii) ~$200mm lower construction balances

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: Projections per Mechanics management; Financial data as of March 31, 2026, unless otherwise specified 1 Includes banks headquartered in California, Oregon and Washington with less than $250bn in total assets CoD: 1.28% U.S. banks: 1.76% #10 of 77 NIB: 36% U.S. banks: 25% #3 of 77 RWA / Assets: 59% U.S. banks: 76% #2 of 77 ROATCE: ~17% U.S. banks: 14.3% #8 of 77 As of MRQ: CET1: 13.9% U.S. banks: 12.2% #19 of 77 Efficiency Ratio: ~50% U.S. banks: 53% #22 of 77 $21.4bn Total assets 166 Branches #4 / #4 CA / West Coast market share by deposits1 Mechanics Bancorp Overview 17% 38% 29% 5% 5% $13.9bn CRE C&I 1-4 Family Cons. / Other Auto 36% 45% 7% 12% $18.2bn Noninterest- bearing Interest-bearing transaction Savings Time Loans Multifamily C&D Deposits 3% 3% 6 In runoff As of MRQ: As of MRQ: As of MRQ: 2027E: 2027E: San Francisco Oakland 880 680 680 90 5 5 Santa Barbara Bakersfield CA OR WA 8 10 40 15 5 5 90 82 182 84 105 405 210 Palm Springs San Diego Los Angeles Santa Maria Santa Barbara Bakersfield Fresno Salinas San Francisco Sacramento Yuba City Chico Redding Seattle Seattle Everett Tacoma Olympia Vancouver Portland 705 Hilo Legend Mechanics (166) HI Honolulu

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 7 Source: S&P Global Market Intelligence Note: Projections per Mechanics management; Financial data as of most recent quarter available ¹ Subject to Board and regulatory approval Exceptional funding base and enterprise efficiency results in leading performance and capital returns despite low-risk asset strategy ~50% 2027E Efficiency Ratio ~1.3% 2027E ROAA ~17% 2027E ROATCE $275mm – $300mm 2027E GAAP Net Income Substantial Dividends1 >100% 2026 payout ratio and >80% 2027E+ payout ratio expected Creates substantial capacity to deploy capital SUPERIOR RISK-ADJUSTED RETURNS 59% RWA / Assets of $10–100bn U.S. public banksCost of Deposits of $10–100bn U.S. public banks Rank: #2 of 77 LOW-RISK ASSET STRATEGY LOW-COST DEPOSIT BASE 1.28% Rank: #10 of 77

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 (#4 CA and #4 West Coast bank by deposits¹) Leading profitability (~17% 2027E ROATCE) despite low-risk assets (59% RWA / Assets) Simple and efficient business model – straightforward asset strategy powered by great deposits Core-funded franchise – no wholesale funding or brokered deposits Strongly capitalized and highly liquid balance sheet (~70% 2027E L/D, ~14% 2027E CET1) Capital efficient with substantial dividend yield Strong alignment between public investors and Ford Financial Fund (74% economic ownership) Experienced management team with strong operating and M&A track records Compelling Investment Thesis ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Note: Projections per Mechanics management ¹ Includes banks headquartered in California, Oregon, and Washington with less than $250bn total assets 8

First Quarter 2026 Financial Drivers 26 9

Net Interest Income & Margin Average Earning Assets and NIM Trends 1 Key Highlights 10 Average Earning Assets Mix Trend ($ in billions) ➢ Q1‘26 net interest income decreased $3.9 million, or 2.2%, to $179.0 million from $183.0 million for Q4‘25 ➢ Net interest margin increased 11 bps during the first quarter, driven primarily from a reduction in deposit cost from $640 million in deliberate run-off of high- cost CDs ➢ Q1’26 interest income included $12.7 million of discount accretion on the loans acquired in the HomeStreet acquisition (~$150 million of remaining discount on acquired HomeStreet loans at 3/31/2026) ➢ Earning asset mix shift was due to lower cash balances from CD outflows 63% 62% 64% 69% 70% 32% 29% 25% 25% 28% 5% 9% 11% 5% 3% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Loans Investments Cash * Investments includes Securities and FHLB stock and other investments 1 Prior period comparative disclosure for the third and fourth quarter of 2025 have been adjusted to reflect the impact of the adoption of ASU 2025-08 $15.1 $15.2 $17.2 $20.7 $20.1 3.45% 3.44% 3.33% 3.50% 3.61% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Average Earning Assets NIM

Non-Interest Income Non-Interest Income Trend Non-Interest Income Mix (ex Bargain Purchase Gain) Key Highlights 11 ($ in millions) ➢ Q1’26 non-interest income decreased $57.5 million, or 73%, to $21 million from $78.5 million in Q4’25 ➢ Q4’25 includes an adjustment to the bargain purchase gain recognized on the HomeStreet acquisition of $55.1 million as a result of writing up the intangible asset associated with the DUS business line ➢ Excluding the impact of the Q4 bargain purchase gain, remaining non-interest income decreased slightly by $2.4M in Q1’26 primarily due to lower trust fees, gain on sale of loans, and BOLI income *Other includes income from bank-owned life insurance and other income 37% 28% 30% 27% 29% 21% 16% 16% 15% 15% 1% 1% 4% 8% 9% 19% 15% 18% 18% 19% 22% 39% 33% 32% 29% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Deposit Charges Trust Fees Servicing Income ATM Network Fees Other $19.4 $23.4 $90.4 $55.1 $15.0 $19.6 $109.8 $78.5 $21.0 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Non-Interest Income Bargain Purchase Gain

Non-Interest Expense Non-Interest Expense Trend 1, 2 Non-Interest Expense (ex Acquisition and Integration Costs) Key Highlights 12 ($ in millions) ➢ Q1’26 non-interest expense increased $0.9 million, or 0.7%, to $130.4 million from $129.5 million in Q4’25 ➢ Merger-related costs during Q1‘26 were $4.8 million compared to $3.5 million in Q4’25, primarily comprised of merger-related professional services expense and severance ➢ Excluding merger-related costs, non-interest expense decreased $0.4 million during Q1’26 ➢ Q1’26 Efficiency Ratio increased to 61.6%, compared to 46.7% in Q4’25, as Q4’25 included the benefit of a $55 million bargain purchase gain ➢ $474 million of annualized core non-interest expense in Q1’26 (excluding CDI amortization) 57% 56% 54% 54% 55% 16% 17% 17% 17% 18% 6% 7% 6% 5% 5% 3% 3% 4% 6% 6% 18% 17% 19% 17% 17% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Salaries & Benefits Occupancy & Equipment Professional Services Amortization of Intangibles Other *Other includes FDIC assessments and regulatory fees, data processing, loan related, marketing and advertising, other real estate owned related and other expense $85.3 $85.4 $99.5 $126.0 $125.6 $0.4 $5.6 $63.9 $3.5 $4.8 $85.6 $91.1 $163.3 $129.5 $130.4 57.8% 59.0% 62.6% 46.7% 61.6% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Total NIE Acquisition and Integration Costs Non-Interest Expense, excl Acq Costs Efficiency Ratio 1 Efficiency Ratio is a Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” in the back of this presentation 2 Prior period comparative disclosure for the third and fourth quarter of 2025 have been adjusted to reflect the impact of the adoption of ASU 2025-08

Loan Portfolio Overview Loan Balance and Yield Trends 1 Quarter-over-Quarter Loan Metrics Key Highlights Quarter-over-Quarter Loan etrics 1 13 ($ in billions) ($ in millions) ➢ Q1‘26 loan interest income decreased $12.9 million, or 6.7%, to $181.2 million from $194.1 million in Q4‘25 ➢ Loan yields decreased 9 bps in Q1‘26, driven by slightly lower contractual yields and accretion ➢ Multifamily and SFR loan yields decreased by 6 bps and 3 bps, respectively, due to lower discount accretion and lower contractual yields on HELOCs from full quarter impact of rate cuts ➢ The Bank’s CRE concentration ratio increased to 348% in Q1‘26 from 344% at the end of the Q4’25 ➢ Construction loans decreased $94 million as we priced up for risk and marginal business went to competitors ➢ The Bank originated $546 million of loan commitments predominantly in SFR and Other Consumer (Inclined – loans against the cash surrender value of whole life insurance policies) ➢ The Bank sold $54 million of loans during the quarter ($22 million of Multifamily DUS and $32 million of SFR) Q4 '25 Q1 '26 Balance Avg Yield Balance Avg Yield Loans HFS 6 5.29% 5 4.97% Commercial and Industrial 482 6.25% 460 6.04% Multifamily 5,355 5.09% 5,292 5.03% CRE Non-owner Occupied 1,740 5.14% 1,712 5.00% CRE Owner Occupied 689 5.76% 587 5.65% Construction and Land 494 6.94% 400 6.82% Residential Real Estate 3,971 5.11% 4,017 5.08% Auto 791 6.45% 640 6.46% Other Consumer 654 5.52% 746 5.35% Total Loans 14,183 5.34% 13,857 5.25% 9.4 9.2 14.6 14.2 13.9 9.5 9.3 11.0 14.4 14.0 5.03% 5.16% 5.08% 5.34% 5.25% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Loans Avg Loans Loan Yield 1 Prior period comparative disclosure for the third and fourth quarter of 2025 have been adjusted to reflect the impact of the adoption of ASU 2025-08

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, with an emphasis on Southern California (54% of total multifamily) ▪ Average multifamily loan size of $3.8 million, with average LTV¹ of 56% and average DCR² of 1.55x ✓ Modest CRE concentrations in retail and office ▪ Average size of CRE retail and office loans are $3.3 and $2.1 million, respectively ▪ Average CRE retail LTV¹ of 49% and DCR² of 1.89x; average CRE office LTV¹ of 54% and DCR² of 1.71x ▪ CRE office decreased by $64 million (9% in Q1’26) ✓ Total CRE3 of ~$7.6bn, with 70% in lower risk-profile multifamily loans ▪ CRE concentration of 348% as of March 31, 2026; 101% ex-multifamily ▪ Seven CRE office loans totaling $35 million in central business districts of Los Angeles, Oakland, San Francisco and Seattle ✓ Continued focus on reducing HomeStreet syndicated loans over time (~$142 million in UPB at 9/30/25, ~$68 million at 03/31/26) ▪ Sold ~$9 million in UPB ($18 million in commitments) of L-HSB C&I syndications at par in Q1’26 ▪ No loans to non-depository financial institutions (NDFI) ✓ Realized a ~$7 million net charge off on a Legacy HomeStreet syndicated C&I credit in Q4’25 (identified during due diligence and fully reserved for). Other Legacy HomeStreet Commercial NCO since merger totals ~$100K. CRE composition: Q1’26C&I breakdown: Q1’26 CRE geography: Q1’26 14 Multifamily, 70% Retail, 9% Office, 9% Industrial, 7% Special Purpose, 3% Hotel, 2% Mixed use, 1% ~$7.6bn Note: Financial data as of March 31, 2026; ¹ LTV defined as current loan balance divided by most recent appraisal; CRE LTV does not include multifamily; ² DCRs based on most recent review (origination in instances where loan is below review threshold); CRE DCRs exclude owner-user loans; 3 Total CRE excludes construction and land development Los Angeles, 32% Central Valley, 7% East Bay, 6% Central Coast, 5% San Diego, 5% Inland Empire, 7% South Bay, 5% North Bay, 3% Sacramento, 2% San Francisco, 2% Other State, 6% Orange, 4% Northern California, 2% ~$7.6bn Washington, 10% Retail, 4% Gov’t & Education, 5% Manufacturing, 3% Utilities, 10% Real Estate Activities, 12% Entertainment / Recreation, 7% Equipment & Machinery, 7% Construction / Contractor, 21% Healthcare / Dental, 12% Other, 12% ~$0.5bn Oregon, 5%

Asset Quality NCOs / Average Loans Loan Loss Reserves / NPAs NPAs / Assets Loan Loss Reserves / Loans HFI 15 * Ratios are annualized 3.21x 3.54x 2.60x 2.96x 2.95x Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Loan Loss Reserves / NPAs 0.80% 0.74% 1.16% 1.08% 1.13% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Loan Loss Reserves / Loans HFI 0.37% 0.31% 0.28% 0.15% 0.12% 0.02% 0.01% 0.04% 0.23% 0.40% 0.32% 0.32% 0.38% 0.12% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Auto NCOs / Avg Loans Non-Auto NCOs / Avg Loans 0.11% 0.06% 0.26% 0.21% 0.23% 0.03% 0.06% 0.02% 0.02% 0.02% 0.14% 0.12% 0.29% 0.23% 0.25% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Non-Auto NPAs / Assets Auto NPAs / Assets

Securities Portfolio Securities Balance and Yield Trends Quarter-over-Quarter Loan Metrics Key Highlights Quarte -over-Quarte Securities Metrics 16 5.0 4.0 4.9 5.4 5.3 4.8 4.3 4.2 5.1 5.4 4.04% 3.88% 3.76% 3.86% 3.97% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Securities Avg Securities Securities Yield ($ in billions) ($ in millions) Q4 '25 Q1 '26 Balance Avg Yield Balance Avg Yield Agency MBS/CMO 3,897 3.92% 3,797 4.08% Agency CMBS 683 2.77% 669 2.71% Municipals 484 4.12% 473 4.16% Corporates 50 6.39% 51 6.33% CLOs 188 5.37% 230 4.85% Treasuries 70 3.78% 70 3.78% Agency Debentures 7 5.03% 7 5.18% Total Securities 5,380 3.86% 5,297 3.97% ➢ Q1‘26 securities interest income increased $3.5 million, or 7%, to $53.1 million from $49.5 million in Q4’25 driven by higher yields ➢ The yield on the securities portfolio increased 11 bps due to the full quarter impact of $650 million of securities purchases in Q4’25 at accretive yields ➢ The overall securities portfolio decreased $83 million during the quarter due to paydowns and a $33 million reduction in fair value due to higher rates

Deposits Overview Deposit Balance and Cost Trends Quarter-over-Quarter Loan Metrics Key Highlights Quarter-over-Quarter Deposit Metrics 17 14.0 14.0 19.5 19.0 18.2 13.8 13.9 15.8 19.2 18.5 1.32% 1.39% 1.45% 1.43% 1.28% Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Deposits Avg Deposits Deposits Rate ($ in billions) ($ in millions) ➢ Q1‘26 deposit interest expense decreased $10.7 million, or 15%, to $58.3 million from $69.0 million for Q4 ’25 ➢ Cost of deposits decreased 15 bps in Q1’26, driven primarily by the deliberate run-off of high-cost Legacy HomeStreet time deposits ➢ Deposit balances decreased $782 million during the first quarter, with $640 million of the decline in high- cost time deposits and $137 million due to seasonal outflows of food and agricultural deposits ➢ Noninterest-bearing demand deposits decreased $232 million, offset by growth in money market deposits of $206 million ➢ Spot cost of deposits at 3/31/2026 was 1.21% (see next page for a detailed stratification) Q4 '25 Q1 '26 Balance Avg Cost Balance Avg Cost Noninterest-bearing Demand 6,744 - 6,512 - Savings 1,367 0.03% 1,363 0.03% Interest-bearing Demand 1,878 0.62% 1,767 0.49% Money Market 6,250 2.57% 6,456 2.48% Time Deposits 2,785 3.28% 2,145 2.80% Total Deposits 19,025 1.43% 18,243 1.28%

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 Bank Deposit Stratification at 3/31/2026 18Note: Financial data as of March 31, 2026; ¹ Represents spot rate as of March 31, 2026 Mechanics Bank Deposits ($ in millions, except account data) Segment Number of Accounts Deposit Balance ($) Deposit Balance (%) Avg Account Size ($) Relationship Weighted Age (yrs) Cost1 (%) Consumer 355,638 9,192 50% 25,848 19.6 1.19% Business 69,511 7,882 43% 113,390 16.1 1.06% Public 1,150 1,169 6% 1,016,089 28.3 2.43% Total 426,299 18,243 100% 42,793 18.7 1.21%

➢ 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 $16.3 billion at 3/31/26, a decrease of $0.7 billion relative to 12/31/25 Capital and Liquidity Update Capital Ratios Trend (%) 1 Quarter-over-Quarter Loan Metrics Key Highlights Av ilable Funding Capacity Trend 19 ($ in billions) 9.9 10.2 10.3 8.7 8.7 16.9 18.3 13.4 14.1 13.9 17.8 19.1 15.6 16.3 16.2 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Tier 1 Leverage Tier 1 Risk-based Total Risk-based Q1 '25 Q2 '25 Q3 '25 Q4 '25 Q1 '26 Excess Reserves at FRB 0.6 1.9 1.2 0.8 0.3 FHLB, FRB & Other borrowing lines 12.1 10.6 13.2 15.8 15.4 Other Unencumbered Securities 0.4 0.7 0.4 0.4 0.6 Total 13.2$ 13.2$ 14.8$ 17.0$ 16.3$ 1 Regulatory capital ratios at March 31, 2026 are preliminary

Appendix 26 20

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 $5,292 0% 56% $3.8 $122 $122 $0 $0 Retail 705 9% 49% 3.3 13 12 1 0 Office 646 22% 54% 2.1 61 59 2 18 Industrial / Warehouse 502 42% 44% 2.0 3 3 0 0 Special Purpose 229 62% 43% 2.9 12 0 12 0 Hotel / Motel 139 12% 48% 4.8 14 14 0 0 Mixed Use 78 16% 42% 1.4 0 0 0 0 Total $7,590 8% 53% $3.3 $226 $210 $17 $18 Collateral Type Balance 2026 2025 2024 2023 2022 2021 2020 or earlier Multifamily $5,292 0% 1% 3% 9% 43% 23% 20% Retail 705 0% 2% 1% 1% 16% 6% 75% Office 646 0% 1% 1% 1% 22% 11% 64% Industrial / Warehouse 502 0% 5% 3% 2% 29% 12% 48% Special Purpose 229 2% 1% 0% 5% 31% 6% 55% Hotel / Motel 139 0% 0% 0% 10% 4% 21% 65% Mixed Use 78 0% 0% 0% 2% 15% 0% 83% Total $7,590 0% 1% 3% 7% 37% 19% 33% CRE by collateral ($mm) CRE by collateral and origination vintage ($mm) Source: Mechanics management; Note: Financial data as of March 31, 2026; 1 LTV defined as current loan balance divided by most recent appraisal Note: Financial data as of March 31, 2026; 1 LTV defined as current loan balance divided by most recent appraisal

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 Industrial Special Purpose Hotel/Motel Mixed Use Total Greater than $20MM $679 $21 $45 $21 $41 $0 $0 $807 $10MM - $20MM 1,352 179 186 72 43 63 0 1,896 $5MM - $10MM 1,150 234 154 116 74 48 28 1,805 $1MM - $5MM 1,981 241 190 238 54 26 35 2,765 Less than $1MM 129 30 70 55 16 2 14 317 Total $5,292 $705 $646 $502 $229 $139 $78 $7,590 Count 1,377 215 307 257 80 29 57 2,322 Average size $3.8 $3.3 $2.1 $2.0 $2.9 $4.8 $1.4 $3.3 Source: Mechanics management; Note: Financial data as of March 31, 2026 1538 86 CRE by collateral and reset/maturity ($mm) 19% 52% 40% 28% $903 79 38 53 220 286 89 62% 51% 26% 36 $854 0 4 $1,091 CRE by loan size and collateral ($mm) Balance Balance maturing next 24 months First rate resets next 24 months Maturing & rate reset % of loans $5,292 705 646 502 229 139 78 $7,590 $99 23% Note: Financial data as of March 31, 2026

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 23 1 Prior period comparative disclosures for the fourth quarter of 2025 have been adjusted to reflect the impact of the adoption of ASU 2025-08 2 Estimated statutory tax rate of 27.25% for quarters ended March 31, 2026, and December 31, 2025, and 28.5% for all other periods 3 Ratios are annualized Return on Average Equity and March 31, December 31, March 31, Return on Average Tangible Equity 1 Ref 2026 2025 2025 Net Income (a) 44,090$ 111,188$ 43,791$ Add: intangibles amortization, net of tax 2 5,254 5,441 1,958 Net income, excluding the impact of intangible amortization, net of tax (b) 49,344$ 116,629$ 45,749$ Average Shareholders' Equity (c) 2,860,494$ 2,792,310$ 2,334,768$ Less: average goodwill and other intangible assets 1,052,479 984,105 880,812 Average tangible shareholders' equity (d) 1,808,015$ 1,808,204$ 1,453,956$ Return on average equity 3 (a)/(c) 6.3% 15.8% 7.6% Return on average tangible equity (non-GAAP) 3 (b)/(d) 11.1% 25.6% 12.8% Quarter Ended Return on Average Equity and Return on Average Tangible Equity ($ in thousands)

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) 24 March 31, December 31, September 30, June 30, March 31, Efficiency Ratio 1 Ref 2026 2025 2025 2025 2025 Noninterest expense (e) 130,427$ 129,510$ 163,329$ 91,080$ 85,638$ Less: intangibles amortization 7,222 7,480 4,251 2,666 2,738 Noninterest expense, excluding the impact of intangible amortization (f) 123,206$ 122,031$ 159,078$ 88,414$ 82,900$ Net interest income (g) 179,045 182,982 144,154 130,128 128,454 Noninterest income (h) 21,020 78,520 109,779 19,625 14,981 Efficiency ratio (unadjusted) (e)/(g+h) 65.2% 49.5% 64.3% 60.8% 59.7% Efficiency ratio (non-GAAP) (f)/(g+h) 61.6% 46.7% 62.6% 59.0% 57.8% Quarter Ended Efficiency Ratio ($ in thousands) 1 Prior period comparative disclosures for the third and fourth quarter of 2025 have been adjusted to reflect the impact of the adoption of ASU 2025-08

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) 25 1 Includes 11,144,480 Class A Shares issuable upon the conversion of 1,114,448 Class B Shares outstanding. Class B Shares also are treated as if such share had been converted into ten Class A Shares for purposes of calculating the economic rights of the Class B Shares, including upon liquidation of the Company or the declaration of dividends or distributions by the Company. As of March 31, December 31, March 31, Book Value and Tangible Book Value Per Share Ref 2026 2025 2025 Total shareholders’ equity (i) 2,791,392$ 2,862,375$ 2,374,090$ Less: goodwill and other intangible assets 1,048,574 1,055,795 879,279 Total tangible shareholders’ equity (j) 1,742,818$ 1,806,580$ 1,494,811$ Common shares outstanding-Class A and B (k) 221,400,590 221,305,009 201,999,328 Common shares outstanding-Class A 220,286,142 220,190,561 200,884,880 Common shares outstanding-Class B-adjusted 11,144,480 11,144,480 11,144,480 Shares outstanding at period end-adjusted 1 (l) 231,430,622 231,335,041 212,029,360 Book value per share (i)/(k) 12.61$ 12.93$ 11.75$ Tangible book value per share (non-GAAP) (j)/(l) 7.53$ 7.81$ 7.05$ Book Value and Tangible Book Value Per Share ($ in thousands, except shares and per share data)

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 Common Equity Ratio and March 31, December 31, March 31, Tangible Common Equity Ratio Ref 2026 2025 2025 Total shareholders’ equity (m) 2,791,392$ 2,862,375$ 2,374,090$ Less: goodwill and other intangible assets 1,048,574 1,055,795 879,279 Total tangible shareholders’ equity (n) 1,742,818$ 1,806,580$ 1,494,811$ Total assets (o) 21,388,955$ 22,351,475$ 16,540,317$ Less: goodwill and other intangible assets 1,048,574 1,055,795 879,279 Total tangible assets (p) 20,340,382$ 21,295,679$ 15,661,038$ Common equity ratio (m)/(o) 13.05% 12.81% 14.35% Tangible common equity ratio (non-GAAP) (n)/(p) 8.57% 8.48% 9.54%

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 $6.5mm provision adjustment related to economy Q-factor 2 $4.8mm in non-core merger expenses 3 Non-core adjustments and core net income reflect estimated FY 2026 book tax rate of 26.50% 4 Ratios are annualized As Non-Core Core Core Net Income Ref Reported Adjustments Net Income Net Interest Income before Provision 179,045$ -$ 179,045$ Provision / (Reversal of Provision) 1 7,767 6,530 1,237 Net Interest Income After Provision 171,278 (6,530) 177,808 Non-Interest Income 21,020 - 21,020 Non-Interest Expense 2 130,427 4,794 125,633 Pre-Tax Income 61,871 (11,324) 73,195 Taxes 3 17,781 19,397 Net Income (a) 44,090$ 53,798$ Add: intangibles amortization, net of tax 5,254 5,254 Net income, excluding the impact of intangible amortization, net of tax (b) 49,344 59,052 Average Assets (c) 21,822,605 21,822,605 Average tangible shareholders' equity (d) 1,808,015 1,808,015 Return on average assets 4 (a)/(c) 0.82% 1.00% Return on average tangible equity (non-GAAP) 4 (b)/(d) 11.1% 13.2% Quarter Ended March 31, 2026

Source: View Original Filing on SEC EDGAR

FAQ

How much did Mechanics Bancorp (HMST) earn in the first quarter of 2026?

Mechanics Bancorp reported net income of $44.1 million for the first quarter of 2026. Diluted earnings per Class A share were $0.19, compared with $111.2 million and $0.48 per share in the fourth quarter of 2025, which included a large bargain purchase gain.

How did Mechanics Bancorp’s net interest margin and deposit costs trend in Q1 2026?

Net interest margin improved to 3.61% in Q1 2026 from 3.50% in Q4 2025. The total cost of deposits fell to 1.28% from 1.43%, reflecting deliberate runoff of higher-cost certificates of deposit and the benefit of prior Federal Reserve rate cuts on funding costs.

What were Mechanics Bancorp’s asset, loan, and deposit balances as of March 31, 2026?

As of March 31, 2026, Mechanics Bancorp reported $21.4 billion in total assets, $13.9 billion in total loans held for investment, and $18.2 billion in total deposits. Noninterest-bearing deposits were $6.5 billion, representing 36% of total deposits, underscoring a relatively low-cost funding base.

How strong were Mechanics Bancorp’s capital ratios at the end of Q1 2026?

Capital ratios remained strong at March 31, 2026. Mechanics Bancorp reported a Total risk-based capital ratio of 16.15%, a Tier 1 and CET1 capital ratio of 13.91%, and a Tier 1 leverage ratio of 8.66%, all based on preliminary regulatory capital calculations.

What is the credit quality picture for Mechanics Bancorp in Q1 2026?

Credit quality metrics were conservative. Nonperforming assets totaled $53.1 million, or 0.25% of total assets, while total delinquent loans were $77.0 million, or 0.56% of loans. The allowance for credit losses on loans was $156.8 million, or 1.13% of total loans.

How did the HomeStreet merger and accounting changes affect Mechanics Bancorp’s results?

Q4 2025 results included a $55.1 million bargain purchase gain from the HomeStreet merger, boosting that quarter’s earnings. Mechanics also early adopted ASU 2025-08 for purchased seasoned loans, leading to a $20.3 million credit loss allowance at acquisition and retrospective adjustments to 2025 comparative figures.

What non-recurring items impacted Mechanics Bancorp’s Q1 2026 earnings?

Management highlighted several notable items in Q1 2026: a $6.5 million pre-tax provision tied to qualitative factors and geopolitical uncertainty, $4.8 million of merger-related acquisition and integration costs, and a $1.7 million remeasurement of deferred tax assets affecting the effective tax rate.

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Q1 2026: Mechanics Bancorp (NASDAQ: MCHB) margins rise as income falls

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How much did Mechanics Bancorp (HMST) earn in the first quarter of 2026?

How did Mechanics Bancorp’s net interest margin and deposit costs trend in Q1 2026?

What were Mechanics Bancorp’s asset, loan, and deposit balances as of March 31, 2026?

How strong were Mechanics Bancorp’s capital ratios at the end of Q1 2026?

What is the credit quality picture for Mechanics Bancorp in Q1 2026?

How did the HomeStreet merger and accounting changes affect Mechanics Bancorp’s results?

What non-recurring items impacted Mechanics Bancorp’s Q1 2026 earnings?

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Q1 2026: Mechanics Bancorp (NASDAQ: MCHB) margins rise as income falls

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FAQ

How much did Mechanics Bancorp (HMST) earn in the first quarter of 2026?

How did Mechanics Bancorp’s net interest margin and deposit costs trend in Q1 2026?

What were Mechanics Bancorp’s asset, loan, and deposit balances as of March 31, 2026?

How strong were Mechanics Bancorp’s capital ratios at the end of Q1 2026?

What is the credit quality picture for Mechanics Bancorp in Q1 2026?

How did the HomeStreet merger and accounting changes affect Mechanics Bancorp’s results?

What non-recurring items impacted Mechanics Bancorp’s Q1 2026 earnings?

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