Mechanics Bancorp. Class A (MCHB)
NASDAQ:MCHB
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Mechanics Bancorp Class A
(NASDAQ:MCHB)
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Rating:64Neutral
Price Target:
$15.50
â–²(4.03% Upside)
Action:ReiteratedDate:03/17/26
The score is driven primarily by improved 2025 profitability and a strengthened, lower-leverage balance sheet, tempered by weak and volatile cash-flow conversion. Valuation is supportive (strong dividend yield and very low stated P/E), while technical signals are neutral-to-soft and do not add meaningful momentum.
Positive Factors
De‑risked balance sheet
Mechanics materially reduced leverage in 2025, shrinking debt-to-equity to ~0.13 and expanding equity while returning ROE to ~6.0%. A meaningfully de‑risked balance sheet lowers insolvency and funding risk, gives capital flexibility for lending, acquisitions, or dividends over the medium term.
Negative Factors
Weak cash conversion
Despite accounting profits in 2025, free cash flow dropped materially and has been volatile across years. Persistent weak cash conversion limits internal funding for loans, investments and dividends, raises refinancing risk in stress, and undermines the reliability of reported earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
De‑risked balance sheet
Mechanics materially reduced leverage in 2025, shrinking debt-to-equity to ~0.13 and expanding equity while returning ROE to ~6.0%. A meaningfully de‑risked balance sheet lowers insolvency and funding risk, gives capital flexibility for lending, acquisitions, or dividends over the medium term.
Read all positive factors
Mechanics Bancorp Class A (MCHB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.54B
Dividend Yield1.49%
Average Volume (3M)404.23K
Price to Earnings (P/E)12.0
Beta (1Y)0.45
Revenue Growth-1.40%
EPS Growth-420.27%
CountryUS
Employees1,800
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.26
Shares Outstanding220,274,080
10 Day Avg. Volume374,627
30 Day Avg. Volume404,225
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)1.12
Price to Sales (P/S)3.10
P/FCF Ratio17.10
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue2.98
Enterprise Value/Gross Profit4.27
Enterprise Value/Ebitda9.19
Forecast
1Y Price Target
$16.50Price Target Upside10.74% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.19
Revenue Forecast (FY)$860.10M
Mechanics Bancorp Class A Business Overview & Revenue Model
Company Description
Mechanics Bank provides various financial services for individual clients, and small and middle-market businesses. The company offers checking and savings accounts. It also provides home and auto loans; term loans and lines of credit, multi-family...
Mechanics Bancorp Class A Earnings Call Summary
Earnings Call Date:Jan 28, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Negative
The earnings call reveals significant financial challenges faced by HomeStreet Bank, including a major net loss and increased nonperforming assets. However, there are positive strategic steps being taken, such as improving liquidity and reducing noninterest expenses, with an expectation of returning to profitability in the near future.Positive Updates
Decrease in Noninterest Expenses
Noninterest expenses were $5.2 million lower in the fourth quarter of 2024 due to a decrease in compensation benefits and administrative expenses.
Negative Updates
Significant Net Loss
The bank reported a net loss of $123.3 million for the fourth quarter of 2024, a significant increase from the $7.3 million loss in the previous quarter.
Read all updates
Q4-2024 Updates
Positive
Negative
Decrease in Noninterest Expenses
Noninterest expenses were $5.2 million lower in the fourth quarter of 2024 due to a decrease in compensation benefits and administrative expenses.
Read all positive updates
Company Guidance
In the fourth quarter of 2024, HomeStreet Bank reported a significant net loss of $123.3 million, equivalent to $6.54 per share, compared to a net loss of $7.3 million or $0.39 per share in the previous quarter. This loss was primarily driven by an $88.8 million pretax loss on the sale of $990 million in multifamily loans, alongside a $53.3 million deferred tax asset valuation allowance. However, on a core basis, excluding these impacts and merger-related expenses, the net loss was reduced to $5.1 million or $0.27 per share. The bank's net interest income increased by $1 million due to a rise in the net interest margin from 1.33% to 1.38%, despite a decrease in noninterest income. The ratio of nonperforming assets to total assets increased to 71 basis points, and loans delinquent over 30 days rose to 106 basis points. HomeStreet Bank's restructuring efforts, including the loan sale, improved liquidity and lowered the loan-to-deposit ratio to 97.4%, with expectations of a return to profitability in the first half of 2025.Mechanics Bancorp Class A Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.03B | 589.62M | 779.42M | 703.83M | 364.27M |
| Gross Profit | 785.37M | 374.58M | 622.92M | 657.37M | 362.03M |
| EBITDA | 330.17M | 58.52M | 305.93M | 333.80M | 157.66M |
| Net Income | 265.74M | 29.00M | 201.91M | 216.58M | 115.42M |
Balance Sheet | |||||
| Total Assets | 22.47B | 16.53B | 9.43B | 9.41B | 7.23B |
| Cash, Cash Equivalents and Short-Term Investments | 1.08B | 999.71M | 240.36M | 91.83M | 65.21M |
| Total Debt | 278.81M | 56.09M | 2.00B | 1.28B | 167.03M |
| Total Liabilities | 19.61B | 14.23B | 8.89B | 8.85B | 6.52B |
| Stockholders Equity | 2.86B | 2.30B | 538.39M | 562.15M | 715.34M |
Cash Flow | |||||
| Free Cash Flow | 187.08M | 285.89M | 9.91M | 230.53M | 170.09M |
| Operating Cash Flow | 193.59M | 292.26M | 13.72M | 237.32M | 173.03M |
| Investing Cash Flow | 1.55B | 476.21M | 478.35M | -2.67B | -125.64M |
| Financing Cash Flow | -1.71B | -1.23B | -349.24M | 2.44B | -40.23M |
Mechanics Bancorp Class A Technical Analysis
Positive
14.90
Price Trends
14.67
Positive
14.39
Positive
13.58
Positive
Market Momentum
0.18
Negative
53.51
Neutral
67.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MCHB, the sentiment is Positive. The current price of 14.9 is above the 20-day moving average (MA) of 14.67, above the 50-day MA of 14.67, and above the 200-day MA of 13.58, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 53.51 is Neutral, neither overbought nor oversold. The STOCH value of 67.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCHB.
Mechanics Bancorp Class A Risk Analysis
Mechanics Bancorp Class A disclosed 1 risk factors in its most recent earnings report. Mechanics Bancorp Class A reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Mechanics Bancorp Class A Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $3.65B | 10.45 | 10.61% | 1.16% | -3.62% | 10.83% | |
70 Outperform | $3.47B | 8.17 | 5.67% | 4.35% | 41.49% | -5.53% | |
69 Neutral | $3.44B | 12.64 | 8.99% | 2.71% | -5.44% | 45.47% | |
69 Neutral | $2.84B | 12.44 | 7.50% | 1.34% | 10.50% | -6.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $3.54B | 12.04 | 10.40% | 1.49% | -1.40% | -420.27% | |
63 Neutral | $3.30B | 15.10 | 7.31% | 3.04% | 9.48% | 12.83% |
* Financial Sector Average
MCHB
Mechanics Bancorp Class A
14.90
4.36
41.42%
BKU
BankUnited
46.99
17.40
58.78%
TOWN
TowneBank
35.72
5.29
17.37%
WSBC
WesBanco
36.20
9.70
36.59%
WSFS
Wsfs Financial
69.36
22.67
48.55%
FBK
FB Financial
55.99
16.25
40.90%
Mechanics Bancorp Class A Corporate Events
Business Operations and StrategyDividends
Mechanics Bancorp Declares Cash Dividends, Updates Share Structure
Positive
Feb 27, 2026
On February 25, 2026, Mechanics Bancorp’s board amended the company’s bylaws to clarify that its shares will generally be uncertificated, unless the board decides otherwise, and that such shares will be maintained in book‑entry f...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Mechanics Bancorp Reports Strong Q4 and 2025 Earnings
Positive
Jan 30, 2026
On January 30, 2026, Mechanics Bancorp reported that fourth-quarter 2025 net income jumped to $124.3 million, or $0.54 per diluted share, from $55.2 million in the third quarter, while full-year 2025 net income surged to $265.7 million, or $1.22 p...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.