Mechanics Bancorp Class A (MCHB)
NASDAQ:MCHB
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Earnings Data
Report Date
Aug 03, 2026After Close (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.25Last Year’s EPS
-0.23Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall the call conveyed constructive progress on integration, capital strength, improved funding costs, and a clear multi-year earnings thesis (2027 ROTCE/ROAA targets and dividend policy), while acknowledging near-term headwinds including geopolitical provisioning, higher-than-expected CD runoff, auto loan runoff drag, and a temporarily weaker fee base. Management emphasized conservative risk management, completed core conversion, expected cost synergies and shareholder returns, and predicted NIM expansion starting in early 2027.Company Guidance
Reported Profitability and Core Earnings
Net income of $44.1 million in Q1 2026; diluted EPS $0.19. Adjusting for non-core items, core net income was $53.8 million, producing a core ROAA of 1.0% and a core ROTCE of 13% for the quarter.
Strong Capital, Liquidity and Funding Profile
CET1 ratio 13.9% and Tier 1 leverage ratio 8.7% at quarter end; available liquidity approximately $16.3 billion. Bank is 100% core funded with no brokered deposits or FHLB borrowings and paid off $65 million of high-cost senior debt.
Successful Merger Technology Conversion and Integration Progress
Completed conversion of all legacy HomeStreet customers onto Mechanics core platform in March; merger integration substantially complete and on track to realize budgeted cost synergies and reduce annual run-rate noninterest expense (ex-CDI) to approximately $430 million by Q4 2026.
Improving Deposit Cost and Net Interest Margin
Cost of deposits improved to 1.28% (down 15 basis points from Q4 2025) with spot cost of deposits at 1.21% as of 03/31/2026. Net interest margin expanded 11 basis points sequentially to 3.61%.
Capital Return to Shareholders
Paid a $0.40 per share regular dividend in Q1 and expects to pay a special dividend of approximately $0.70 per share in Q2 (subject to regulatory/Board approval); company expects to target ~80% payout ratio going forward.
Portfolio Quality and Coverage
Allowance for credit losses (ACL) increased to 1.13% of loans (up 5 bps) and totals $157 million. Allowance covers nonperforming assets at 2.95x; nonperforming assets were low at 0.25% of total assets (vs 0.23% in Q4).
CRE Composition and Underwriting Characteristics
CRE concentration reported at 348% including multifamily; multifamily comprises ~70% of CRE with avg loan size $3.8 million, avg LTV 56%, and avg debt coverage ratio 1.55x. Excluding multifamily the CRE concentration would be ~101%.
Forward Earnings Power and 2027 Targets
Management projects NIM stability near term with expansion beginning early 2027; targets for 2027 include ROTCE 17%–18%, ROAA 1.3%–1.4% and GAAP net income of $275 million–$300 million.
MCHB Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MCHB Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 30, 2026 | $15.18 | $14.77 | -2.73% |
Dec 31, 2025 | $14.16 | $14.23 | +0.55% |
Oct 30, 2025 | $12.90 | $13.07 | +1.34% |
Jul 28, 2025 | $12.65 | $12.71 | +0.53% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Mechanics Bancorp Class A (MCHB) report earnings?
Mechanics Bancorp Class A (MCHB) is schdueled to report earning on Aug 03, 2026, After Close (Confirmed).
What is Mechanics Bancorp Class A (MCHB) earnings time?
Mechanics Bancorp Class A (MCHB) earnings time is at Aug 03, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is MCHB EPS forecast?
MCHB EPS forecast for the fiscal quarter 2026 (Q2) is 0.25.