Mechanics Bancorp Class A (MCHB) AI Stock Analysis

• Market Cap: $3.14B
• Dividend Yield: 1.48%
• Average Volume (3M): 603.06K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -1.40%
• EPS Growth: -420.27%
• Country: US
• Employees: 1,800
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.25
• Shares Outstanding: 220,099,200
• 10 Day Avg. Volume: 949,880
• 30 Day Avg. Volume: 603,057
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00124
• P/FCF Ratio: <0.01
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $14.50
• Price Target Upside: 2.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.88
• Revenue Forecast (FY): $191.90M

• Rating: 51 Neutral
• Price Target: $14.50 ▲(2.33% Upside)

The overall stock score of 51 reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. While technical analysis shows some positive momentum, and corporate events suggest strategic improvements, the negative valuation metrics and financial performance weigh heavily on the score.

Positive Factors

Merger with HomeStreet Bank

The merger strengthens Mechanics Bancorp's market position, enhances its capital levels, and provides a clean balance sheet, supporting long-term growth.

Dividend Declaration

The dividend declaration reflects strong regulatory capital ratios and successful integration efforts, indicating a positive capital return strategy.

Debt Management Improvement

Improved debt management reduces financial risk and enhances financial flexibility, supporting long-term stability and growth.

Negative Factors

Declining Revenue

Declining revenue impacts the company's ability to sustain growth and profitability, posing a challenge to long-term financial health.

Negative Cash Flow

Negative cash flow indicates challenges in cash generation, which can limit the company's ability to invest in growth and manage liabilities.

High Leverage

High leverage can strain financial resources and increase vulnerability to economic downturns, affecting long-term financial stability.

Mechanics Bancorp Class A Business Overview & Revenue Model

Company Description

Mechanics Bancorp Class A (MCHB) is a financial institution that operates primarily in the banking sector, providing a range of banking and financial services to individuals, small businesses, and corporations. The company offers products such as personal and commercial loans, savings and checking accounts, mortgages, and investment services. With a focus on community banking, MCHB emphasizes personalized customer service and aims to meet the financial needs of its local clientele.

How the Company Makes Money

Mechanics Bancorp generates revenue through several key streams, primarily from interest income earned on loans provided to customers, which includes personal loans, mortgages, and business loans. Additionally, the company earns income from fees associated with banking services, such as account maintenance fees, transaction fees, and service charges. Investment income from securities and other financial products also contributes to its revenue. The bank may engage in partnerships with local businesses and organizations to enhance its service offerings and attract new customers, further strengthening its financial position.

Mechanics Bancorp Class A Financial Statement Overview

Summary

Mechanics Bancorp Class A is facing significant financial challenges, with declining revenue, profitability, and cash flow. The high leverage and negative returns on equity further exacerbate financial risks. While there are some improvements in debt management, the company needs to address its revenue and profitability issues to improve its financial health.

Income Statement

Mechanics Bancorp Class A has experienced declining revenue and profitability over recent periods. The TTM data shows a negative revenue growth rate of -5.12%, with net profit margins deteriorating to -46.82%. The gross profit margin has also decreased significantly compared to previous years. These trends indicate challenges in maintaining revenue and controlling costs, impacting overall profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, particularly in recent years, indicating increased leverage and potential financial risk. The TTM data shows a debt-to-equity ratio of 0.56, which is an improvement from previous years but still reflects significant leverage. Return on equity is negative, suggesting the company is not generating sufficient returns on shareholder investments. The equity ratio remains stable, indicating a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis shows negative operating and free cash flows in the TTM period, with a free cash flow growth rate of -22.08%. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is relatively high, suggesting that while cash flow is negative, it is less negative than net income, indicating some level of cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	698.81M	589.62M	779.42M	703.83M	698.86M	683.59M
Gross Profit	409.23M	374.58M	622.92M	657.37M	667.06M	534.39M
EBITDA	183.36M	58.52M	305.93M	333.80M	324.15M	147.33M
Net Income	146.20M	29.00M	201.91M	216.58M	206.01M	93.46M
Balance Sheet
Total Assets	22.71B	16.49B	17.50B	18.14B	19.42B	19.14B
Cash, Cash Equivalents and Short-Term Investments	4.93B	4.06B	3.80B	3.00B	7.02B	6.49B
Total Debt	280.92M	56.09M	832.70M	331.02M	62.93M	81.19M
Total Liabilities	19.93B	14.19B	15.27B	16.00B	17.04B	16.68B
Stockholders Equity	2.77B	2.30B	2.24B	2.13B	2.39B	2.47B
Cash Flow
Free Cash Flow	158.24M	285.94M	259.13M	308.70M	288.02M	204.58M
Operating Cash Flow	164.18M	292.31M	266.00M	318.18M	295.26M	212.47M
Investing Cash Flow	1.09B	475.80M	1.67B	258.06M	-665.44M	-1.82B
Financing Cash Flow	-1.04B	-1.23B	-813.45M	-1.25B	199.71M	1.73B

Mechanics Bancorp Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHB, the sentiment is Neutral. The current price of 14.17 is below the 20-day moving average (MA) of 14.61, above the 50-day MA of 13.78, and above the 200-day MA of 12.54, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 48.72 is Neutral, neither overbought nor oversold. The STOCH value of 19.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MCHB.

Mechanics Bancorp Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSBC	78 Outperform	$3.36B	17.77	5.25%	4.22%	41.49%	-5.53%
WSFS	78 Outperform	$3.17B	11.95	10.27%	1.14%	-3.62%	10.83%
BKU	74 Outperform	$3.43B	12.89	9.04%	2.68%	-5.44%	45.47%
FBK	71 Outperform	$3.06B	26.76	5.85%	1.33%	10.50%	-6.22%
TOWN	70 Outperform	$2.89B	15.87	7.37%	2.92%	9.48%	12.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MCHB	51 Neutral	$3.14B	-2.12	-4.65%	1.48%	-1.40%	-420.27%

Mechanics Bancorp Class A Corporate Events

Mechanics Bancorp Sells DUS Business to Fifth Third

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.

Mechanics Bancorp Declares Cash Dividend for Shareholders

On November 26, 2025, Mechanics Bancorp’s Board of Directors declared a cash dividend of $0.21 per share for Class A common stock and $2.10 per share for Class B common stock, payable on December 15, 2025, to shareholders of record by December 8, 2025. The announcement reflects the company’s strong regulatory capital ratios and successful integration of HomeStreet Bank, indicating a positive outlook for its capital return strategy.

Mechanics Bancorp Completes Merger with HomeStreet Bank

Mechanics Bancorp, a financial institution, completed its merger with HomeStreet Bank on September 2, 2025. This merger has significantly impacted the company’s financial results for the third quarter of 2025, with Mechanics Bancorp reporting a net income of $55.2 million and a bargain purchase gain of $90.4 million. The merger has led to substantial one-time expenses, including compensation and system termination costs. The company has also paid off all legacy HomeStreet wholesale funding, positioning itself as a leading community bank on the West Coast with strong capital levels and a clean balance sheet.