Mechanics Bancorp Class A (MCHB) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 1.49%
• Average Volume (3M): 390.54K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.41
• Revenue Growth: -1.40%
• EPS Growth: -420.27%
• Country: US
• Employees: 1,800
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.54
• Shares Outstanding: 220,099,200
• 10 Day Avg. Volume: 348,690
• 30 Day Avg. Volume: 390,536
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00066
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 6.52
• Enterprise Value/Gross Profit: 20.75
• Enterprise Value/Ebitda: -63.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $16.50 ▲(13.09% Upside)

The score is driven primarily by improving (but historically volatile) financial performance, supported by constructive technical trends. Valuation is a meaningful drag due to a negative P/E and only a modest dividend yield, while recent corporate events are positive but still carry integration and deal-execution risk.

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 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 lending, commercial real estate loans, owner-occupied real estate loans, equipment financing, and trade services and letters of credit; and small business administration loans. In addition, the company offers credit and debit cards; payable and receivable solutions, fraud prevention, and cash management services; merchant and payroll services, paycheck protection program solutions, and workplace benefit plans; foreign currency, cashier's checks, wire transfers, overdraft, deposit and treasury, trust and estate, investment and asset management, retirement planning, and wealth management services; and online and mobile banking services. It operates through a network of 115 branch locations in the Greater San Francisco, Sacramento, Los Angeles, and San Diego areas, as well as Central Valley in California. Mechanics Bank was founded in 1905 and is headquartered in Walnut Creek, California.

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

Fundamentals show an improving but uneven profile: TTM profitability rebounded sharply (about 21% net margin) and reported leverage is low (debt-to-equity ~0.10). However, results have been volatile across years (including negative margins/ROE historically) and cash-flow momentum weakened with sharply lower free cash flow versus the prior year and weaker coverage.

Income Statement

TTM (Trailing-Twelve-Months) performance shows a sharp rebound, with strong profitability (about 21% net margin) and solid operating margins, alongside very strong revenue growth versus the prior annual period. That said, results have been volatile over time: 2024 margins were meaningfully lower than TTM, and 2023 showed negative margins despite higher revenue, indicating earnings sensitivity and less consistent profitability than top-tier peers.

Balance Sheet

The balance sheet looks conservatively positioned in TTM (Trailing-Twelve-Months), with low leverage (debt-to-equity around 0.10) and improved returns on equity versus 2024. The main concern is historical leverage and return volatility—2022–2023 show very elevated leverage levels and a negative return on equity in 2023—suggesting the capital structure and/or reported debt levels have fluctuated significantly over the period.

Cash Flow

Cash generation is positive in TTM (Trailing-Twelve-Months), with free cash flow roughly matching net income (near 1:1), which is supportive of earnings quality. However, free cash flow declined sharply versus the prior year, and operating cash flow strength relative to reported obligations is weak based on the provided coverage ratio, pointing to less reliable cash-flow momentum despite the earnings rebound.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	414.62M	328.32M	411.76M	325.88M	336.36M	371.37M
Gross Profit	130.21M	45.83M	178.77M	260.10M	334.12M	307.55M
EBITDA	-42.38M	-105.82M	-16.88M	103.02M	165.35M	118.36M
Net Income	-77.04M	-144.34M	-27.51M	66.54M	115.42M	79.99M
Balance Sheet
Total Assets	22.71B	8.12B	9.39B	9.36B	7.20B	7.24B
Cash, Cash Equivalents and Short-Term Investments	4.93B	406.60M	215.66M	72.83M	65.21M	58.05M
Total Debt	280.92M	2.23B	3.71B	2.26B	208.03M	448.64M
Total Liabilities	19.93B	7.73B	8.85B	8.80B	6.49B	6.52B
Stockholders Equity	2.77B	397.00M	538.39M	562.15M	715.34M	717.75M
Cash Flow
Free Cash Flow	86.73M	-46.41M	4.21M	211.54M	170.09M	-28.84M
Operating Cash Flow	80.79M	-45.92M	8.02M	218.33M	173.03M	-25.55M
Investing Cash Flow	2.72B	1.33B	484.05M	-2.65B	-125.64M	-232.62M
Financing Cash Flow	-919.04M	-1.10B	-349.24M	2.44B	-40.23M	258.34M

Mechanics Bancorp Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 14.59 is below the 20-day moving average (MA) of 14.79, below the 50-day MA of 14.59, and above the 200-day MA of 13.21, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 68.20 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSFS	76 Outperform	$3.54B	12.72	10.27%	1.16%	-3.62%	10.83%
WSBC	75 Outperform	$3.39B	15.86	6.54%	4.35%	41.49%	-5.53%
FBK	72 Outperform	$3.08B	23.48	6.98%	1.34%	10.50%	-6.22%
BKU	70 Outperform	$3.57B	13.46	8.97%	2.71%	-5.44%	45.47%
TOWN	70 Outperform	$3.23B	15.84	7.37%	3.04%	9.48%	12.83%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MCHB	67 Neutral	$3.47B	-2.33	10.47%	1.49%	-1.40%	-420.27%

Mechanics Bancorp Class A Corporate Events

Mechanics Bancorp Reports Strong Q4 and 2025 Earnings

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 per diluted share, compared with $29.0 million in 2024, largely reflecting the impact of its September 2, 2025 merger of HomeStreet Bank into Mechanics Bank and a preliminary $145.5 million bargain purchase gain tied to that transaction. As of December 31, 2025, the company reported $22.4 billion in assets, $14.2 billion in loans, $19.0 billion in deposits, a loans-to-deposits ratio of 75%, and robust preliminary regulatory capital ratios, while noting the payoff of all HomeStreet FHLB borrowings and brokered deposits, lower non-recurring acquisition and integration costs in the quarter, and the early adoption of new accounting standards for purchased seasoned loans that drove a reversal of prior credit-loss provisions and an updated valuation connected to an agreed sale of its Fannie Mae DUS business line to Fifth Third Bank, expected to close in early 2026.

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.

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.

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.

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.

The most recent analyst rating on (MCHB) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Mechanics Bancorp Class A stock, see the MCHB Stock Forecast page.