On October 28, 2026, Mechanics Bancorp (Nasdaq: MCHB) reported its financial results for the third quarter of 2026. The company reported net income of $46.0 million, or $0.20 per diluted share, for the quarter ended September 30, 2026. This represents a decrease from the $57.7 million, or $0.25 per diluted share, reported in the second quarter of 2026. For the first nine months of the year, net income totaled $147.8 million, or $0.64 per diluted share, compared to $154.6 million, or $0.72 per diluted share, during the same period in 2025.

At the end of the quarter, Mechanics Bancorp reported total assets of $20.9 billion, a decrease from $21.2 billion at the end of the second quarter. Total loans stood at $13.0 billion, down from $13.6 billion in the prior quarter. Total deposits were $18.0 billion, with noninterest-bearing deposits at $6.3 billion. The company’s loans-to-deposits ratio was 72% at September 30, 2026.

The company noted a decrease in noninterest expense for the third quarter, which totaled $114.2 million, down from $124.5 million in the second quarter. This reduction was attributed to lower acquisition and integration costs and lower salaries and employee benefits expense. Mechanics Bancorp also reported a total cost of deposits of 1.33% for the third quarter.

Mechanics Bancorp maintained strong capital ratios at September 30, 2026, including a preliminary estimated 16.98% total risk-based capital ratio, a 14.73% Tier 1 capital ratio, and a 14.73% Common Equity Tier 1 (CET1) ratio. The company’s allowance for credit losses was 1.03% of total loans, and total delinquent loans decreased to $67.5 million, representing 0.52% of total loans.

During the quarter, Mechanics Bancorp completed the sale of $417 million of performing indirect auto loans, resulting in a $10.3 million loss on sale. Additionally, the company completed a $308 million securities portfolio restructuring, selling low-yielding available-for-sale securities and reinvesting the proceeds in mortgage-backed securities, which resulted in a $32.3 million loss on sale. The company also recorded a gain on other equity investments of $5.1 million for the quarter.

Dividends paid in the third quarter of 2026 were $0.25 per share of Class A common stock and $2.50 per share of Class B common stock.