Mechanics Bancorp Sells DUS Business to Fifth Third

Mechanics Bancorp Class A ( (MCHB) ) has issued an announcement.

On December 3, 2025, Mechanics Bank entered into an agreement to sell its Fannie Mae Delegated Underwriting and Servicing (DUS) business line to Fifth Third Bank for approximately $130 million. This transaction, expected to close in the first quarter of 2026, will transfer Mechanics Bank’s $1.8 billion DUS servicing portfolio to Fifth Third, enhancing growth opportunities for the DUS team and potentially strengthening Fifth Third’s market position in multifamily lending.

The most recent analyst rating on (MCHB) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Mechanics Bancorp Class A stock, see the MCHB Stock Forecast page.

Spark’s Take on MCHB Stock

According to Spark, TipRanks’ AI Analyst, MCHB is a Neutral.

Mechanics Bancorp Class A’s overall stock score is primarily impacted by its weak financial performance, characterized by declining revenue, profitability, and cash flow. However, the stock shows positive technical momentum, and recent corporate events like the merger with HomeStreet Bank provide a positive outlook. The valuation remains a concern due to the negative P/E ratio, but the dividend yield offers some appeal to investors.

To see Spark’s full report on MCHB stock, click here.

More about Mechanics Bancorp Class A

Mechanics Bancorp, headquartered in Walnut Creek, California, is the financial holding company of Mechanics Bank, a full-service bank with $22.7 billion in assets and 166 branches across California, Oregon, Washington, and Hawaii. Founded in 1905, the bank offers a wide range of products and services including consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services.

Average Trading Volume: 351,587

Technical Sentiment Signal: Hold

Current Market Cap: $3.37B

See more data about MCHB stock on TipRanks’ Stock Analysis page.