Mechanics Bancorp sells $417M auto loans to BofA
Mechanics Bancorp sells most of its remaining runoff auto loan portfolio to Bank of America near book value to reduce risk and improve liquidity.
Rhea-AI Filing Summary
Mechanics Bancorp (MCHB) reported that its wholly owned subsidiary, Mechanics Bank, has completed the sale to Bank of America’s trading desk of approximately $417 million of its remaining performing indirect auto loans at a price near book value, using a cutoff date of August 31, 2026.
After this transaction, Mechanics Bank will retain about $13 million of runoff auto loans, while Westlake Portfolio Management will continue servicing the auto loans for both Bank of America and Mechanics Bank. President and CEO C.J. Johnson stated that selling the substantial majority of the runoff auto loan portfolio is intended to reduce risk, improve liquidity and enhance future profitability.
Mechanics Bancorp is the financial holding company of Mechanics Bank, a full-service FDIC‑insured bank with $21.2 billion in assets as of June 30, 2026 and 166 branches across California, Oregon, Washington and Hawaii.
Positive
- Sale of $417 million runoff auto loans near book value removes most of the remaining indirect auto exposure while management expects lower risk, better liquidity and improved future profitability.
Negative
- None.
Filing Explained
The September 16 Form 8-K confirms that Mechanics Bank completed the sale of approximately
8-K Event Classification
2 items: 8.01, 9.01
2 items
Item 8.01
Other Events
Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Runoff auto loans sold: $417 million
Runoff auto loans retained: $13 million
Assets: $21.2 billion
+2 more
5 metrics
Runoff auto loans sold
$417 million
Performing indirect auto loans sold to Bank of America’s trading desk, cutoff date August 31, 2026
Runoff auto loans retained
$13 million
Runoff auto loan balance remaining at Mechanics Bank after the portfolio sale
Assets
$21.2 billion
Mechanics Bank total assets as of June 30, 2026
Branches
166 branches
Mechanics Bank branch count across California, Oregon, Washington and Hawaii
Portfolio sale pricing
Near book value
Price received for approximately $417 million of performing indirect auto loans
Key Terms
indirect auto loans, runoff auto loan portfolio, trading desk, forward-looking statements, +1 more
5 terms
indirect auto loans financial
"sale of approximately $417 million of its remaining performing indirect auto loans"
runoff auto loan portfolio financial
"sale of the substantial majority of our runoff auto loan portfolio"
trading desk financial
"sale to Bank of America’s trading desk of approximately $417 million"
forward-looking statements regulatory
"This communication contains forward-looking statements within the meaning of the Reform Act"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
safe harbor regulatory
"protection of the safe harbor for forward-looking statements contained in the Reform Act"
Safe harbor is a rule that protects companies or individuals from legal trouble if they follow certain guidelines or procedures. It’s like having a safety net that allows them to act without fear of punishment, as long as they stick to the rules. This helps encourage honest behavior and clear standards in financial and legal activities.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What major transaction did Mechanics Bancorp (MCHB) announce in this 8-K?
Mechanics Bancorp announced that Mechanics Bank completed the sale to Bank of America’s trading desk of approximately $417 million of its remaining performing indirect auto loans at a price near book value.
How much of the runoff auto loan portfolio does Mechanics Bancorp (MCHB) still hold?
After the transaction, Mechanics Bank will retain approximately $13 million of runoff auto loans, while the substantial majority of the portfolio has been sold to Bank of America’s trading desk.
What benefits does Mechanics Bancorp (MCHB) expect from the auto loan sale?
President and CEO C.J. Johnson stated that selling the substantial majority of the runoff auto loan portfolio is expected to reduce risk, improve liquidity and enhance future profitability for the company.
Who will service the auto loans after Mechanics Bancorp’s (MCHB) portfolio sale?
Westlake Portfolio Management will continue to service the auto loans for both Bank of America and Mechanics Bank following the sale of the runoff indirect auto loan portfolio.
What is the size and footprint of Mechanics Bancorp’s (MCHB) banking operations?
Mechanics Bank, the subsidiary of Mechanics Bancorp, had $21.2 billion in assets as of June 30, 2026 and operated 166 branches across California, Oregon, Washington and Hawaii.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): September 16, 2026
________________________________
________________________________
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(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 | ||||||||||||
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 8.01 Other Events
On September 16, 2026, Mechanics Bancorp issued a press release announcing the completion of the sale by its wholly owned subsidiary, Mechanics Bank, of approximately $417 million of its remaining performing indirect auto loans to Bank of America’s trading desk. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
| Exhibit 99.1 | Mechanics Bancorp Press Release Dated September 16, 2026 | ||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within with Inline XBRL) | ||||
2
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: September 16, 2026
| MECHANICS BANCORP | |||||||||||
| By: | /s/ Nathan Duda | ||||||||||
| Nathan Duda | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
3
Mechanics Bank Completes Sale of Substantial Majority of Runoff Auto Loan Portfolio to Bank of America
September 16, 2026
WALNUT CREEK, Calif.– Mechanics Bancorp (“Mechanics”) (Nasdaq: MCHB) announced today that its wholly owned subsidiary, Mechanics Bank, completed the sale to Bank of America’s trading desk of approximately $417 million of its remaining performing indirect auto loans at a price near book value, with a cutoff date of August 31, 2026. Mechanics Bank will retain approximately $13 million of runoff auto loans. Westlake Portfolio Management will continue to service the auto loans for both Bank of America and Mechanics Bank.
C.J. Johnson, President and CEO of Mechanics, said: “This transaction represents another important step in our ongoing efforts to optimize our balance sheet and allocate capital to its highest and best use. The sale of the substantial majority of our runoff auto loans will reduce risk, improve liquidity and enhance the future profitability of our company.”
About Mechanics Bancorp
Mechanics Bancorp is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service, FDIC-insured bank with $21.2 billion in assets as of June 30, 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 Regarding Forward Looking Statements
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). All statements other than statements of historical facts included herein may be forward-looking statements. Generally, forward-looking statements include the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” “potential,” “predict,” “goal,” “upcoming,” “outlook,” “guidance” or “project” or the negative of those terms, or similar expressions. We do not assume any obligation or undertake to update any forward-looking statements after the date of this 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. For all forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Reform Act.
We caution readers that such forward-looking statements involve known and unknown risks and uncertainties, assumptions, estimates and other important factors that could cause actual results to differ materially from any results, performance or events expressed in or implied by such forward-looking statements, including with respect to the anticipated benefits of the sale of the substantial majority of our
runoff auto loan portfolio. These risks, uncertainties and other factors include macroeconomic pressures and general uncertainty regarding the overall future economic environment.
A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives can be found in our public statements and/or filings with the Securities and Exchange Commission (the “SEC”), including our 2025 Annual Report on form 10-K, filed with 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 qualified, and should not be relied upon as a prediction of actual results or future events.
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.
Mechanics Bancorp: Greg Jones, gregory_jones@mechanicsbank.com, (916) 797-8218