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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 8-K  
_______________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 30, 2026
________________________________ 
MECHANICS BANCORP
________________________________ 
(Exact name of registrant as specified in its charter)
Washington 001-35424 91-0186600
(State or other jurisdiction
of incorporation)		 (Commission
File Number)		 (IRS Employer
Identification No.)
1111 Civic Drive, Walnut Creek, CA 94596
(Address of principal executive offices) (Zip Code)
(925) 482-8000
(Registrant’s telephone number, including area code) 
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, No Par ValueMCHBThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02    Results of Operations and Financial Condition
On January 30, 2026, Mechanics Bancorp issued a press release reporting results of operations for the fourth quarter and year ending December 31, 2025. A copy of the earnings release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 7.01    Regulation FD Disclosure
Mechanics Bancorp is hereby furnishing a fourth quarter 2025 slide presentation that executive management intends to use in meetings with institutional investors and industry analysts, including in a webcast on January 30, 2026, at 11:00 a.m. (eastern time). The slide presentation is furnished as Exhibit 99.2 to this Current Report on Form 8-K and will be available on Mechanics Bancorp's investor relations web site at http://ir.mechanicsbank.com.
In accordance with General Instruction B.2 of Form 8-K, the information contained in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01    Financial Statements and Exhibits
Exhibit 99.1
Exhibit 99.2
Exhibit 104Cover Page Interactive Data File (embedded within with Inline XBRL)
2

SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: January 30, 2026
MECHANICS BANCORP
By: /s/ Nathan Duda
 Nathan Duda
 Executive Vice President and Chief Financial Officer
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mechanicsbancorplogo.jpg
Mechanics Bancorp Reports Fourth Quarter and Full Year 2025 Results

Fourth Quarter Highlights
$22.4 billion
Total Assets
$124.3 million
Net Income
14.07%
CET1 Ratio (1)
$12.93
Book Value Per Share
$7.81
Tangible Book Value Per Share (2)

Walnut Creek, CA –January 30, 2026 – (BUSINESS WIRE) – Mechanics Bancorp (Nasdaq: MCHB) (“Mechanics” or the “Company”), the financial holding company of Mechanics Bank, today announced its financial results for the quarter and year ended December 31, 2025. Mechanics reported net income of $124.3 million, or $0.54 per diluted share (3), for the fourth quarter of 2025, compared to $55.2 million, or $0.25 per diluted share, for the third quarter of 2025. For 2025, Mechanics reported net income of $265.7 million, or $1.22 per diluted share, compared to $29.0 million, or $0.14 per diluted share, for 2024. Mechanics’ financial results in 2025 were materially impacted by the merger of HomeStreet Bank with and into Mechanics Bank, which was completed on September 2, 2025. Refer to “Presentation of Results – HomeStreet Bank Merger” below for additional information about the presentation of the financial statements following the merger. In addition, financial results for the fourth quarter of 2025 were impacted by the Company’s adoption of new accounting guidance for certain loans acquired in the HomeStreet merger. Refer to “Adoption of Purchased Seasoned Loans Accounting Standard” for additional discussion.

C.J. Johnson, President and CEO of Mechanics, said, “We had a very strong fourth quarter and I’m quite pleased with the progress that’s been made on our merger integration. More hard work remains, but I’m confident we’ll finish the job and be well-positioned for continued success in 2026 and beyond.”

Fourth Quarter and Year End 2025 Highlights:
•Total assets of $22.4 billion at December 31, 2025, compared with $22.7 billion at September 30, 2025 and $16.5 billion at December 31, 2024.
•Total loans of $14.2 billion at December 31, 2025, resulting in a loans-to-deposits ratio of 75%, compared with $14.6 billion at September 30, 2025 and $9.6 billion at December 31, 2024.
•Total deposits of $19.0 billion at December 31, 2025, compared with $19.5 billion at September 30, 2025 and $13.9 billion at December 31, 2024, and noninterest-bearing deposits of $6.7 billion at December 31, 2025, compared with $6.7 billion at September 30, 2025 and $5.6 billion at December 31, 2024.
•Total cost of deposits was 1.43% for the quarter and 1.40% for the year ended December 31, 2025.
•Strong capital ratios (1), including an estimated 16.28% Total risk-based capital ratio, 14.07% Tier 1 capital ratio, 14.07% CET1 capital ratio and 8.65% Tier 1 leverage ratio at December 31, 2025.
(1) Regulatory capital ratios at December 31, 2025 are preliminary.
(2) Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below.
(3) Unless otherwise specified, refers to diluted earnings per share for Class A common stock.
1



•Allowance for credit losses (“ACL”) to total loans of 1.08%, down from 1.16% at the prior quarter-end.
•No wholesale funding, as all HomeStreet Federal Home Loan Bank (“FHLB”) borrowings and brokered deposits have been paid off.
•Preliminary bargain purchase gain recognized of $145.5 million from the HomeStreet merger, consisting of $55.1 million in the fourth quarter and $90.4 million in the third quarter. The additional bargain purchase gain in the fourth quarter resulted from an updated valuation on Mechanics Bank’s Fannie Mae Delegated Underwriting and Servicing (“DUS”) intangible as a result of the agreement announced in the fourth quarter of 2025 to sell our DUS business line to Fifth Third Bank, which is subject to Fannie Mae’s approval and is expected to close in the first quarter of 2026.
•Non-recurring acquisition and integration costs of $3.5 million in the quarter, compared to $63.9 million in the prior quarter. Such costs were $73.4 million in 2025.

Presentation of Results – HomeStreet Bank Merger

On September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics’ financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank’s historical financial results on a standalone basis. In addition, Mechanics’ reported financial results for the year ended December 31, 2025 reflect Mechanics Bank’s financial results on a standalone basis until the closing of the merger on September 2, 2025 and results of the combined company from September 2, 2025 through December 31, 2025. For periods prior to September 2, 2025, the number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. The estimates of fair value were recorded based on valuations as of the merger date. These estimates are considered preliminary as of December 31, 2025, are subject to change for up to one year after the merger date, and any changes could be material.

Adoption of Purchased Seasoned Loans Accounting Standard

The Company early adopted Accounting Standards Update (“ASU”) 2025-08, “Financial Instruments–Credit Losses (Topic 326): Purchased Loans,” during the fourth quarter of 2025. This new standard, which the Company elected to early adopt as of January 1, 2025, requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses (gross-up approach). As a result, for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter. The impact of the adjustments is reflected in the fourth quarter 2025 results presented in this earnings release. Required disclosures regarding the impact of the adoption and its impact on reported third quarter 2025 results will be presented when the Company files its annual report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its quarterly report on Form 10-Q for the quarter ended September 30, 2026.

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INCOME STATEMENT HIGHLIGHTS

Summary Income Statement
Quarter EndedYear Ended
(in thousands)December 31,
2025		September 30,
2025		December 31,
2024		December 31,
2025		December 31,
2024
Total interest income$255,138 $204,888 $176,852 $811,764 $735,718 
Total interest expense73,673 59,218 48,452 226,046 216,549 
Net interest income181,465 145,670 128,400 585,718 519,169 
Provision (reversal of provision) for credit losses on loans(22,160)46,058 (4,243)20,503 (1,559)
Provision (reversal of provision) for credit losses on unfunded lending commitments(1,316)960 (465)(987)52 
Total provision (reversal of provision) for credit losses(23,476)47,018 (4,708)19,516 (1,507)
Net gain (loss) on sales and calls of investment securities276 155 — 4,568 (207,203)
Bargain purchase gain55,097 90,363 — 145,460 — 
Other noninterest income23,148 19,260 18,535 72,877 68,083 
Total noninterest income (loss)78,521 109,778 18,535 222,905 (139,120)
Acquisition and integration costs3,507 63,869 — 73,365 — 
Other noninterest expense126,003 99,460 84,449 396,192 345,859 
Total noninterest expense129,510 163,329 84,449 469,557 345,859 
Income before income tax expense (benefit)153,952 45,101 67,194 319,550 35,697 
Income tax expense (benefit)29,650 (10,060)15,531 53,811 6,698 
Net income$124,302 $55,161 $51,663 $265,739 $28,999 


Net Interest Income

Q4 2025 vs. Q3 2025

Net interest income in the fourth quarter of 2025 was $35.8 million higher than the third quarter of 2025 primarily as a result of the merger with HomeStreet Bank in September 2025. Mechanics’ net interest margin increased from 3.36% to 3.47% primarily due to the full quarter of interest income on the HomeStreet acquired loans and slightly lower cost of deposits.

Full Year 2025 vs. Full Year 2024

Net interest income in 2025 increased $66.5 million as compared to 2024 due primarily to an increase in net interest margin from 3.31% in 2024 to 3.43% in 2025. The increase in net interest margin is primarily due to a 15 basis point reduction in the rates paid on interest-bearing liabilities and a 7 basis point increase on interest-earning asset yields. The decrease in rates paid on interest-bearing liabilities was primarily driven by the payoff of $750 million of Bank Term Funding Program (“BTFP”) borrowings in September 2024, partially offset by higher borrowing costs on acquired debt from the HomeStreet merger. The increase in earning asset yields was primarily driven by higher yields on the investment securities portfolio as a result of higher yields on purchases in 2025.

3



Provision for Credit Losses

Q4 2025 vs. Q3 2025

The provision for credit losses in the fourth quarter of 2025, which consists of the provision for credit losses on loans and provision for unfunded commitments, was a reversal of provision of $23.5 million, compared to a provision of $47.0 million for the third quarter of 2025. The reversal of provision in the fourth quarter of 2025 was primarily the result of the adoption of ASU 2025-08, which eliminated the double count of the credit mark and the allowance for credit losses on the non-PCD HomeStreet purchased seasoned loans, in addition to lower loan balances due to repayments during the quarter.

Full Year 2025 vs. Full Year 2024

The provision for credit losses for loans and unfunded commitments was $19.5 million in 2025, compared to a $1.5 million reversal of provision in 2024. The increase in provision for 2025 was primarily driven by updates to ACL factors that were driven by a re-evaluation of future economic conditions and interest rate repricing risk.

Noninterest Income

Q4 2025 vs. Q3 2025

Noninterest income in the fourth quarter of 2025 decreased from the third quarter of 2025 primarily due to the bargain purchase gain from the HomeStreet merger, which was $90.4 million in the third quarter and $55.1 million in the fourth quarter.

Full Year 2025 vs. Full Year 2024

Noninterest income for 2025 increased from 2024 primarily due to the bargain purchase gain of $145.5 million from the HomeStreet merger in 2025 and the $207.2 million loss on the sale of lower yielding AFS investment securities as part of a balance sheet restructure in 2024.

Nathan Duda added, “With the updated valuation on the DUS intangible, our bargain purchase gain recognized on the HomeStreet acquisition has increased to a total of $145.5 million, which significantly exceeds our original expectations.”

Noninterest Expense

Q4 2025 vs. Q3 2025

Noninterest expense decreased $33.8 million in the fourth quarter of 2025 compared to the third quarter of 2025, primarily due to non-recurring acquisition and integration related costs of $63.9 million recognized with the HomeStreet merger in the third quarter, partially offset by a full quarter of legacy HomeStreet operating expenses in the fourth quarter.

Full Year 2025 vs. Full Year 2024

Noninterest expense increased $123.7 million for 2025 compared to 2024 primarily due to acquisition and integration related costs of $73.4 million, increases in salaries and employee benefits expense, and four months of legacy HomeStreet operating expenses after the merger.

C.J. Johnson said, “We continue to make progress eliminating redundant costs from the combined banks and are well on our way to achieving our expected cost saves by the fourth quarter of 2026.”

4



Income Taxes

Q4 2025 vs. Q3 2025

Our effective tax rate during the fourth quarter of 2025 was 19.3% as compared to (22.3)% in the third quarter of 2025 and our federal statutory rate was 21.0%. The bargain purchase gain from the merger with HomeStreet, which is an after-tax item, was $55.1 million in the fourth quarter and $90.4 million in the third quarter. The bargain purchase gain was the primary reason for the low effective tax rate in the fourth quarter and the negative effective tax rate in the third quarter.

Full Year 2025 vs. Full Year 2024

Our effective tax rate for 2025 was 16.8% as compared to 18.8% for 2024 and our federal statutory rate was 21.0%. The $145.5 million bargain purchase gain was the primary reason for the low effective tax rate in 2025.

BALANCE SHEET HIGHLIGHTS
Selected Balance Sheet Items
 
(in thousands)December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Cash and cash equivalents$1,029,983 $1,442,647 $2,078,960 $798,309 $999,711 
Trading securities49,518 50,357 — — — 
Securities available-for-sale3,993,385 3,490,478 2,562,438 3,586,322 3,065,251 
Securities held-to-maturity1,336,632 1,363,636 1,391,211 1,416,914 1,440,494 
Loans held for investment (before ACL)14,176,936 14,568,795 9,239,834 9,416,024 9,643,497 
Total assets22,351,475 22,708,820 16,571,173 16,540,317 16,490,112 
Noninterest-bearing demand deposits$6,744,082 $6,748,479 $5,453,890 $5,495,994 $5,616,116 
Total deposits19,024,997 19,452,819 13,968,863 13,986,226 13,941,804 
Long-term debt192,014 190,123 — — — 
Total liabilities19,489,100 19,934,686 14,154,556 14,166,227 14,188,244 
Total shareholders’ equity2,862,375 2,774,134 2,416,617 2,374,090 2,301,868 


Investment Securities

Trading securities totaled $49.5 million at December 31, 2025, compared to $50.4 million at September 30, 2025 and were acquired in the HomeStreet merger. Securities available-for-sale increased by $502.9 million during the fourth quarter to $4.0 billion at December 31, 2025. Securities held-to-maturity decreased by $27.0 million in the fourth quarter and totaled $1.3 billion at December 31, 2025. The net increase in investment securities was primarily due to securities purchased during the quarter.


Loans

Total loans at December 31, 2025 were $14.2 billion, a decrease of $391.9 million from $14.6 billion at September 30, 2025, due primarily to loan repayments during the quarter.

5



Deposits

Total deposits decreased by $427.8 million during the fourth quarter of 2025 to $19.0 billion at December 31, 2025, due primarily to maturities of certificates of deposits acquired in the HomeStreet merger.

Noninterest-bearing accounts totaled $6.7 billion and represented 35% of total deposits at December 31, 2025, compared to $6.7 billion, or 35% of total deposits, at September 30, 2025.

Insured deposits of $12.2 billion represented 64% of total deposits at December 31, 2025, compared to insured deposits of $12.8 billion, or 66% of total deposits at September 30, 2025.

Borrowings

Total borrowings were $192.0 million at December 31, 2025, compared to $190.1 million at September 30, 2025, and includes subordinated notes, senior notes and trust preferred debt acquired in the HomeStreet merger.

Equity

During the fourth quarter of 2025, total shareholders’ equity increased by $88.2 million to $2.9 billion and tangible common equity (1) increased by $19.0 million to $1.8 billion at December 31, 2025. The increase in total shareholders’ equity for the fourth quarter resulted from net income in the fourth quarter of 2025, less dividends paid to common shareholders.

At December 31, 2025, book value per common share increased to $12.93, compared to $12.54 at September 30, 2025. At December 31, 2025, tangible book value per common share (1) increased to $7.81, compared to $7.73 at September 30, 2025.

(1)Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below.

6



CAPITAL AND LIQUIDITY

Capital ratios remain strong with Total risk-based capital at 16.28% and a Tier 1 leverage ratio of 8.65% at December 31, 2025. The following table presents our regulatory capital ratios as of the dates indicated:

December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Mechanics Bancorp (1),(2)
Tier 1 leverage capital (to average assets)8.65 %10.34 %n/an/an/a
Common equity Tier 1 capital (to risk-weighted assets)14.07 %13.42 %n/an/an/a
Tier 1 risk-based capital (to risk-weighted assets)14.07 %13.42 %n/an/an/a
Total risk-based capital (to risk-weighted assets)16.28 %15.57 %n/an/an/a
Mechanics Bank (1)
Tier 1 leverage capital (to average assets)9.58 %11.46 %10.16 %9.91 %9.66 %
Common equity Tier 1 capital (to risk-weighted assets)15.59 %14.87 %18.27 %16.89 %16.14 %
Tier 1 risk-based capital (to risk-weighted assets)15.59 %14.87 %18.27 %16.89 %16.14 %
Total risk-based capital (to risk-weighted assets)16.88 %16.13 %19.10 %17.77 %17.14 %

(1)On September 2, 2025, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the merger and becoming a wholly-owned subsidiary of Mechanics Bancorp. As a result, for periods prior to September 30, 2025, regulatory capital ratios are only presented for Mechanics Bank.
(2)Regulatory capital ratios at December 31, 2025 are preliminary.

At December 31, 2025, Mechanics had available borrowing capacity of $6.2 billion from the FHLB, $4.4 billion from the Federal Reserve and $5.3 billion under borrowing lines established with other financial institutions.


7



CREDIT QUALITY

Asset Quality Information and Ratios

(dollars in thousands)December 31, 2025September 30,
2025		June 30,
2025		March 31, 2025December 31,
2024
Delinquent loans held for investment:
30-89 days past due$58,459 $55,883 $106,710 $100,225 $91,337 
90+ days past due34,686 38,316 10,660 5,248 6,082 
Total delinquent loans $93,145 $94,199 $117,370 $105,473 $97,419 
Total delinquent loans to loans held for investment0.66 %0.65 %1.27 %1.12 %1.01 %
Nonperforming assets
Nonaccrual loans$42,863 $60,586 $18,606 $9,905 $10,693 
90+ days past due and accruing3,943 2,653 717 211 211 
Total nonperforming loans 46,806 63,239 19,323 10,116 10,904 
Foreclosed assets4,990 1,675 — 13,400 15,600 
Total nonperforming assets$51,796 $64,914 $19,323 $23,516 $26,504 
Allowance for credit losses on loans$153,319 $168,959 $68,334 $75,515 $88,558 
Allowance for credit losses on loans to total loans held for investment1.08 %1.16 %0.74 %0.80 %0.92 %
Allowance for credit losses on loans to nonaccrual loans357.70 %278.88 %367.27 %762.38 %828.22 %
Nonaccrual loans to total loans held for investment0.30 %0.42 %0.20 %0.11 %0.11 %
Nonperforming assets to total assets0.23 %0.29 %0.12 %0.14 %0.16 %
At December 31, 2025, total delinquent loans were $93.1 million, compared to $94.2 million at September 30, 2025. Total delinquent loans as a percentage of total loans were 0.66% at December 31, 2025, as compared to 0.65% at September 30, 2025.

At December 31, 2025, nonperforming assets were $51.8 million, compared to $64.9 million at September 30, 2025. The decrease was mostly due to loan charge-offs and repayments. Nonperforming assets as a percentage of total assets decreased to 0.23% at December 31, 2025 as compared to 0.29% at September 30, 2025.

8



Allowance for Credit Losses

 Quarter EndedYear Ended
(dollars in thousands)December 31,
2025		September 30,
2025		December 31,
2024		December 31,
2025		December 31,
2024
Allowance for credit losses on loans:
Beginning balance$168,959 $68,334 $103,481 $88,558 $133,778 
Initial allowance on acquired purchased credit deteriorated (“PCD”) loans— 63,494 — 63,494 — 
Initial allowance on acquired purchased seasoned loans (“PSL”) (1)
20,252 — — 20,252 — 
Provision (reversal of provision) for credit losses (1)
(22,160)46,058 (4,243)20,503 (1,559)
Loans charged off(17,052)(12,803)(13,512)(52,021)(59,546)
Recoveries 3,320 3,876 2,832 12,533 15,885 
Ending balance$153,319 $168,959 $88,558 $153,319 $88,558 
Allowance for credit losses on unfunded lending commitments:
Beginning balance$8,431 $3,735 $4,831 $4,366 $4,314 
Initial allowance on acquired loans— 3,736 — 3,736 — 
Provision (reversal of provision) for credit losses(1,316)960 (465)(987)52 
Ending balance$7,115 $8,431 $4,366 $7,115 $4,366 
Net charge-offs to average loans (2)
0.38%0.32%0.43%0.36%0.43%
(1) The third quarter of 2025 included a provision for credit losses of $20.2 million for non-PCD loans, which are also considered purchased seasoned loans, acquired in the HomeStreet merger. As discussed in “Adoption of Purchased Seasoned Loans Accounting Standard,” in the fourth quarter of 2025, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter. Required disclosures regarding the impact of the adoption and its impact on reported third quarter 2025 results will be presented when the Company files its annual report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its quarterly report on Form 10-Q for the quarter ended September 30, 2026.
(2) For periods less than a year, ratios are annualized.

The allowance for credit losses on loans totaled $153.3 million, or 1.08% of total loans at December 31, 2025, compared to $169.0 million, or 1.16% of total loans at September 30, 2025. The allowance decreased due to repayments in the auto portfolio, which has a higher level of reserves, and the charge off of a specific reserve associated with an acquired syndicated loan.

Conference Call

The Company will host a conference call and webcast to discuss its fourth quarter 2025 financial results at 11:00 a.m. Eastern Time (ET) on Friday, January 30, 2026. Investors and analysts interested in participating in the call are invited to dial 1-833-470-1428 (international callers please dial 1-646-844-6383) and use access code 763176 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available on the Company’s website at https://ir.mechanicsbank.com. The earnings presentation for the call will also be available on the Company’s Investor Relations website prior to the call.

A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed through the News & Events tab of the Company’s website as well as by dialing 1-866-813-9403 (international callers please dial 1-929-458-6194). The pin to access the telephone replay is 196939. The replay will be available until 11:59 p.m. (Eastern Time) on February 6, 2026.
9





About Mechanics Bancorp

Mechanics Bancorp (NASDAQ: MCHB) is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service bank with $22.4 billion in assets as of December 31, 2025, and 166 branches across California, Oregon, Washington and Hawaii. Founded in 1905 to help families, businesses and communities prosper, Mechanics Bank offers a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services.

To learn more, visit www.MechanicsBank.com.

Cautionary Note

The information contained herein is preliminary and based on Company data available at the time of this earnings release. It speaks only as of the particular date or dates included in the earnings release. Except as required by law, Mechanics does not undertake an obligation to, and disclaims any duty to, update any of the information herein.

Forward-Looking Statements

This earnings release, including information incorporated by reference herein, contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, contained or incorporated by reference in this Annual Report, including statements regarding our plans, objectives, expectations, strategies, beliefs, or future performance or events, are forward-looking statements. Generally, forward-looking statements include the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “look,” “may,” “optimistic,” “plan,” “potential,” “projection,” “should,” “will,” and “would” and similar expressions (or the negative of these terms), although not all forward-looking statements contain these identifying words. Forward-looking statements involve known and unknown risks, uncertainties, assumptions, estimates, and other important factors that could cause actual results to differ materially from any results, performance or events expressed or implied by such forward-looking statements. Furthermore, the following factors, among others, may cause actual results to differ materially from current expectations in the forward-looking statements, including those set forth in this earnings release:

•substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events;
•failure to realize the anticipated benefits of the HomeStreet merger;
•our ability to effectively manage our expanded operations;
•negative developments and events impacting the financial services industry;
•the soundness of other financial institutions;
•our ability to maintain sufficient liquidity, or an increase in the cost of liquidity;
•unpredictable economic, market and business conditions;
•interest rate risk, and fluctuations in interest rates;
•inflationary pressures and rising prices;
•adverse changes in real estate market values;
•the impact of climate change, including indirectly through impacts on our customers;
•the adequacy of our allowances for credit losses for loans and debt securities;
•incurring losses in our loan portfolio despite strict adherence to our underwriting practices;
•fluctuations in our mortgage origination business based upon seasonal and other factors;
10



•our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn;
•the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans;
•the ability of our small- to medium-sized borrowers to weather adverse business developments;
•our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk;
•our ability to mitigate our exposure to interest rate risk;
•negative publicity regarding us, or financial institutions in general;
•environmental liability risk associated with our lending activities;
•our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers;
•our ability to develop, implement and maintain an effective system of internal control over financial reporting;
•the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements;
•the potential that we may write off goodwill and other intangible assets resulting from business combinations;
•dependence on our management team;
•exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors;
•legal claims and litigation, including potential securities law liabilities;
•employee class action lawsuits or other legal proceedings;
•our ability to raise additional capital, if needed;
•competition from other financial institutions and financial service companies;
•regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities;
•extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income;
•our ability to comply with stringent capital requirements;
•the impact of federal and state regulators’ examination of our business;
•our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations;
•our reliance on dividends from Mechanics Bank;
•our ability to raise debt or capital to pay off our debts upon maturity;
•our level of indebtedness following the completion of the HomeStreet merger;
•increasing and continually evolving cybersecurity and other technological risks;
•our ability to adapt to rapid technological change;
•our ability to effectively implement new technological solutions or enhancements to existing systems or platforms;
•our dependence on our computer and communications systems;
•Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval;
•we are a “controlled company” within the meaning of the rules of NASDAQ and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards;
•future sales of shares by existing shareholders could cause our stock price to decline;
•our reliance on certain entities affiliated with the Ford Financial Funds for services;
•reduced disclosure requirements as a smaller reporting company; and
•certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock.

11



A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives is also contained in the Risk Factors included on Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 2, 2025. We strongly recommend readers review those disclosures in conjunction with the discussions herein. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and should not be relied upon as a prediction of actual results or future events.

Forward-looking statements in this earnings release are based on management’s expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this earnings release as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.


Investor Relations Inquiries:

Contact:  Mechanics Bancorp
Nathan Duda
Executive Vice President and Chief Financial Officer
ir@mechanicsbank.com


12



CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(dollars in thousands)December 31, 2025September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
ASSETS
Cash and cash equivalents $1,029,983 $1,442,647 $2,078,960 $798,309 $999,711 
Trading securities49,518 50,357 — — — 
Securities available-for-sale3,993,385 3,490,478 2,562,438 3,586,322 3,065,251 
Securities held-to-maturity1,336,632 1,363,636 1,391,211 1,416,914 1,440,494 
Loans held for sale 5,967 54,985 415 219 543 
Loan receivables14,176,936 14,568,795 9,239,834 9,416,024 9,643,497 
Allowance for credit losses on loans(153,319)(168,959)(68,334)(75,515)(88,558)
Net loan receivables14,023,617 14,399,836 9,171,500 9,340,509 9,554,939 
Mortgage servicing rights 85,832 88,595 — — — 
Other real estate owned4,990 1,675 — 13,400 15,600 
Federal Home Loan Bank stock, at cost17,292 17,294 17,250 17,250 17,250 
Premises and equipment, net143,895 143,917 114,715 115,509 117,362 
Bank-owned life insurance170,339 169,163 84,786 84,300 83,741 
Goodwill843,305 843,305 843,305 843,305 843,305 
Other intangible assets, net212,491 143,264 33,309 35,975 38,744 
Right-of-use asset82,076 85,657 56,696 56,268 53,545 
Interest receivable and other assets352,153 414,011 216,588 232,037 259,627 
TOTAL ASSETS$22,351,475 $22,708,820 $16,571,173 $16,540,317 $16,490,112 
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Noninterest-bearing demand deposits$6,744,082 $6,748,479 $5,453,890 $5,495,994 $5,616,116 
Interest-bearing transaction accounts8,128,832 7,918,670 6,359,590 6,357,909 6,138,909 
Savings and time deposits4,152,083 4,785,670 2,155,383 2,132,323 2,186,779 
Total deposits19,024,997 19,452,819 13,968,863 13,986,226 13,941,804 
Long-term debt192,014 190,123 — — — 
Operating lease liability86,794 90,796 59,233 58,914 56,094 
Interest payable and other liabilities185,295 200,948 126,460 121,087 190,346 
TOTAL LIABILITIES19,489,100 19,934,686 14,154,556 14,166,227 14,188,244 
SHAREHOLDERS’ EQUITY
Common stock2,402,193 2,401,989 2,122,374 2,122,117 2,122,117 
Retained earnings456,695 380,954 325,793 283,308 239,517 
Accumulated other comprehensive income (loss), net of tax3,487 (8,809)(31,550)(31,335)(59,766)
TOTAL SHAREHOLDERS’ EQUITY2,862,375 2,774,134 2,416,617 2,374,090 2,301,868 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$22,351,475 $22,708,820 $16,571,173 $16,540,317 $16,490,112 
Common shares outstanding-Class A and B221,305,009221,203,135202,015,832201,999,328201,999,328

13



CONSOLIDATED INCOME STATEMENTS (UNAUDITED)
Quarter EndedYear Ended
(dollars in thousands, except per share amounts)December 31, 2025September 30, 2025December 31, 2024December 31, 2025December 31, 2024
INTEREST INCOME
Loans interest and fees $192,591 $141,773 $124,504 $572,272 $528,514 
Investment securities49,529 40,266 40,572 179,393 131,810 
Interest-bearing cash and other13,018 22,849 11,776 60,099 75,394 
Total interest income255,138 204,888 176,852 811,764 735,718 
INTEREST EXPENSE
Deposits68,967 57,496 48,399 219,618 189,258 
Borrowed funds— 124 1 124 26,429 
Long-term debt4,706 1,598 52 6,304 862 
Total interest expense73,673 59,218 48,452 226,046 216,549 
Net interest income181,465 145,670 128,400 585,718 519,169 
Provision (reversal of provision) for credit losses on loans(22,160)46,058 (4,243)20,503 (1,559)
Provision (reversal of provision) for credit losses on unfunded lending commitments(1,316)960 (465)(987)52 
Net interest income after provision for credit losses204,941 98,652 133,108 566,202 520,676 
NONINTEREST INCOME (LOSS)
Service charges on deposit accounts6,360 5,875 5,796 23,221 23,650 
Trust fees and commissions3,565 3,117 3,478 13,017 12,319 
ATM network fee income4,137 3,425 3,074 13,490 12,158 
Loan servicing income1,873 680 182 2,898 968 
Net gain (loss) on sales and calls of investment securities276 155 — 4,568 (207,203)
Income from bank-owned life insurance1,699 2,120 456 4,848 2,600 
Bargain purchase gain55,097 90,363 — 145,460 — 
Other 5,514 4,043 5,549 15,403 16,388 
Total noninterest income (loss)78,521 109,778 18,535 222,905 (139,120)
NONINTEREST EXPENSE
Salaries and employee benefits68,566 54,168 43,456 219,319 191,173 
Occupancy11,967 9,566 8,200 37,842 32,313 
Equipment9,826 7,288 5,771 29,271 23,414 
Professional services6,816 5,560 5,976 23,199 21,374 
FDIC assessments and regulatory fees1,851 2,722 5,946 8,999 14,625 
Amortization of intangible assets7,479 4,251 2,742 17,134 13,447 
Data processing4,876 3,315 2,167 11,741 8,901 
Loan related3,802 4,439 1,559 13,038 6,975 
Marketing and advertising1,123 680 666 3,131 3,269 
Other real estate owned related(221)(103)617 2,464 2,505 
Acquisition and integration costs3,507 63,869 — 73,365 — 
Other9,918 7,574 7,349 30,054 27,863 
Total noninterest expense129,510 163,329 84,449 469,557 345,859 
Income before income tax expense (benefit)153,952 45,101 67,194 319,550 35,697 
INCOME TAX EXPENSE (BENEFIT)29,650 (10,060)15,531 53,811 6,698 
NET INCOME$124,302 $55,161 $51,663 $265,739 $28,999 
Basic earnings per share
Class A common stock$0.54 $0.25 $0.24 $1.22 $0.14 
Class B common stock$5.36 $2.53 $2.44 $12.03 $1.37 
Diluted earnings per share
Class A common stock$0.54 $0.25 $0.24 $1.22 $0.14 
Class B common stock$5.36 $2.53 $2.44 $12.03 $1.37 
Basic weighted-average shares outstanding
Class A common stock220,865,980207,189,764200,884,880207,512,468200,878,747
Class B common stock1,114,4481,114,4481,114,4481,114,4481,114,448
Diluted weighted-average shares outstanding
Class A common stock221,095,493207,258,678200,977,311207,617,154200,938,167
Class B common stock1,114,4481,114,4481,114,4481,114,4481,114,448
14



LOANS HELD FOR INVESTMENT
(in thousands)December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Commercial and industrial$482,170 $547,311 $280,551 $352,267 $410,040 
Commercial real estate
Multifamily5,355,252 5,448,374 2,826,750 2,833,328 2,794,581 
Non-owner occupied1,740,277 1,864,040 1,551,617 1,618,001 1,657,597 
Owner occupied689,079 709,239 323,419 341,446 360,100 
Construction and land development493,992 535,776 135,013 119,089 104,430 
Residential real estate3,970,803 3,907,101 2,438,271 2,336,268 2,280,963 
Auto791,012 954,615 1,147,967 1,363,084 1,596,935 
Other consumer654,351 602,339 536,246 452,541 438,851 
Total LHFI$14,176,936 $14,568,795 $9,239,834 $9,416,024 $9,643,497 

COMPOSITION OF DEPOSITS
(in thousands)December 31,
2025		September 30,
2025		June 30,
2025		March 31,
2025		December 31,
2024
Deposits by product:
Noninterest-bearing demand deposits$6,744,082 $6,748,479 $5,453,890 $5,495,994 $5,616,116 
Interest-bearing:
Interest-bearing demand deposits1,878,468 1,733,215 1,331,785 1,384,081 1,435,266 
Savings1,367,475 1,398,430 1,173,943 1,201,988 1,216,900 
Money market6,250,364 6,185,455 5,027,805 4,973,828 4,703,643 
Certificates of deposit2,784,608 3,387,240 981,440 930,335 969,879 
Total interest-bearing deposits12,280,915 12,704,340 8,514,973 8,490,232 8,325,688 
Total deposits$19,024,997 $19,452,819 $13,968,863 $13,986,226 $13,941,804 
15




SUMMARY FINANCIAL DATA
 Quarter EndedYear Ended
December 31,
2025		September 30,
2025		December 31,
2024		December 31,
2025		December 31,
2024
Select performance ratios:
Return on average equity (1)
17.66 %8.61 %8.95 %10.57 %1.29 %
Return on average tangible equity (1) , (2)
28.47 %14.17 %15.09 %17.37 %2.83 %
Return on average assets (1)
2.20 %1.18 %1.25 %1.44 %0.17 %
Efficiency ratio
49.8 %63.9 %57.5 %58.1 %91.0 %
Efficiency ratio (non-GAAP) (2)
46.9 %62.3 %55.6 %55.9 %87.5 %
Net interest margin (1)
3.47 %3.36 %3.38 %3.43 %3.31 %

 As of
December 31, 2025September 30,
2025		June 30,
2025		March 31, 2025December 31, 2024
Other data:
Book value per share$12.93 $12.54 $11.96 $11.75 $11.40 
Tangible book value per share (2)
$7.81 $7.73 $7.26 $7.05 $6.70 
Common equity ratio12.81 %12.22 %14.58 %14.35 %13.96 %
Tangible common equity ratio (2)
8.48 %8.23 %9.81 %9.54 %9.10 %
Loans to deposit ratio 74.52 %74.89 %66.15 %67.32 %69.17 %
Full time equivalent employees1,9212,0361,3031,4261,439

(1)For periods less than a year, ratios are annualized.
(2)Return on average tangible equity, efficiency ratio (excluding the impact of intangible amortization), tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. For a reconciliation of these measures to the comparable GAAP financial measure or the computation of the measure, see “Non-GAAP Financial Measures and Reconciliations” below.

16




NET INTEREST MARGIN
Quarter Ended
December 31, 2025September 30, 2025December 31, 2024
(dollars in thousands)Average
Balance		Interest
Average
Yield/Cost (1)
Average
Balance		Interest
Average
Yield/Cost (1)
Average
Balance		Interest
Average
Yield/Cost (1)
Assets:
Interest-earning assets:
Cash and cash equivalents$1,094,743 $10,262 3.72 %$1,851,414 $19,858 4.26 %$935,774 $10,348 4.40 %
Investment securities5,090,812 49,529 3.86 %4,248,163 40,266 3.76 %4,319,572 40,572 3.74 %
Loans (2)
14,412,244 192,591 5.30 %10,959,795 141,773 5.13 %9,777,388 124,504 5.07 %
FHLB stock and other investments149,275 2,756 7.33 %119,880 2,991 9.90 %98,779 1,428 5.75 %
Total interest-earning assets20,747,074 255,138 4.88 %17,179,252 204,888 4.73 %15,131,513 176,852 4.65 %
Noninterest-earning assets1,686,765 1,418,197 1,300,345 
Total assets$22,433,839 $18,597,449 $16,431,858 
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Demand deposits$1,789,672 $2,815 0.62 %$1,480,835 $1,196 0.32 %$1,389,096 $1,575 0.45 %
Money market and savings7,637,068 40,636 2.11 %6,701,690 42,382 2.51 %6,012,678 39,718 2.63 %
Certificates of deposit3,089,704 25,516 3.28 %1,758,659 13,918 3.14 %1,021,815 7,106 2.77 %
Total12,516,444 68,967 2.19 %9,941,184 57,496 2.29 %8,423,589 48,399 2.29 %
Borrowings:
Borrowings— — — %10,939 124 4.48 %— — — %
Long-term debt190,783 4,706 9.79 %63,034 1,598 10.06 %3,545 53 5.88 %
Total interest-bearing liabilities12,707,227 73,673 2.30 %10,015,157 59,218 2.35 %8,427,134 48,452 2.29 %
Noninterest-bearing liabilities:
Demand deposits (3)
6,634,915 5,823,539 5,503,664 
Other liabilities299,387 216,836 203,884 
Total liabilities19,641,529 16,055,532 14,134,682 
Shareholders’ equity2,792,310 2,541,917 2,297,176 
Total liabilities and shareholders’ equity$22,433,839 $18,597,449 $16,431,858 
Net interest income
$181,465 $145,670 $128,400 
Net interest rate spread2.58 %2.38 %2.36 %
Net interest margin3.47 %3.36 %3.38 %


(1)For periods less than a year, ratios are annualized.
(2)Includes loans held for sale.
(3)Cost of all deposits, including noninterest-bearing demand deposits, was 1.43%, 1.45% and 1.38% for the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.


Year Ended December 31,
 20252024
(dollars in thousands)Average
Balance		InterestAverage
Yield/Cost 		Average
Balance		InterestAverage
Yield/Cost
Assets:
Interest-earning assets:
Cash and cash equivalents$1,270,348 $51,975 4.09 %$1,377,338 $69,662 5.06 %
Investment securities4,615,697 179,393 3.89 %4,016,215 131,810 3.28 %
Loans (1)
11,063,647 572,272 5.17 %10,177,692 528,514 5.19 %
FHLB stock and other investments118,599 8,124 6.85 %101,598 5,732 5.64 %
Total interest-earning assets17,068,291 811,764 4.76 %15,672,843 735,718 4.69 %
Noninterest-earning assets1,426,002 1,330,445 
Total assets$18,494,293 $17,003,288 
Liabilities and shareholders’ equity:
Interest-bearing liabilities:
Interest-bearing deposits:
Demand deposits$1,505,484 $6,354 0.42 %$1,474,428 $9,177 0.62 %
Money market and savings 6,660,081 162,114 2.43 %5,835,061 151,689 2.60 %
Certificates of deposit1,693,105 51,150 3.02 %1,021,679 28,392 2.78 %
Total 9,858,670 219,618 2.23 %8,331,168 189,258 2.27 %
Borrowings:
Borrowings2,760 124 4.48 %553,284 26,429 4.78 %
Long-term debt63,976 6,304 9.85 %15,809 862 5.45 %
Total interest-bearing liabilities9,925,406 226,046 2.28 %8,900,261 216,549 2.43 %
Noninterest-bearing liabilities:
Demand deposits (2)
5,817,264 5,640,938 
Other liabilities236,997 206,823 
Total liabilities15,979,667 14,748,022 
Shareholders’ equity2,514,626 2,255,266 
Total liabilities and shareholders’ equity$18,494,293 $17,003,288 
Net interest income
$585,718 $519,169 
Net interest spread2.48 %2.26 %
Net interest margin3.43 %3.31 %


(1)Includes loans held for sale.
(2)Cost of deposits including noninterest-bearing deposits, was 1.40% and 1.35% for the years ended December 31, 2025 and 2024, respectively.


NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS

This document contains non-GAAP financial measures of our financial performance, including return on average tangible equity, efficiency ratio (excluding the impact of intangible amortization), tangible book value per share and tangible common equity ratio. We believe that these non-GAAP financial measures provide useful information because they are used by management to evaluate our operating performance, without the impact of goodwill and other intangible assets. However, these financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative to, its GAAP results. The non-GAAP financial measures Mechanics presents may differ from similarly captioned measures presented by other companies.


17



(dollars in thousands, except per share amounts)Quarter EndedYear Ended
Return on Average Equity and Return on Average Tangible EquityRef.December 31, 2025September 30,
2025		December 31, 2024December 31, 2025December 31, 2024
Net income(a)$124,302 $55,161 $51,663 $265,739 $28,999 
Add: intangibles amortization, net of tax (1)
5,442 3,040 1,961 12,305 9,615 
Net income, excluding the impact of intangible amortization, net of tax(b)$129,744 $58,201 $53,624 $278,044 $38,614 
Average shareholders’ equity(c)$2,792,310 $2,541,917 $2,297,176 $2,514,626 $2,255,266 
Less: average goodwill and other intangible assets984,105 912,679 883,522 914,226 888,462 
Average tangible shareholders’ equity(d)$1,808,205 $1,629,238 $1,413,654 $1,600,400 $1,366,804 
Return on average equity (2)
(a) / (c)17.66 %8.61 %8.95 %10.57 %1.29 %
Return on average tangible equity (non-GAAP) (2)
(b) / (d)28.47 %14.17 %15.09 %17.37 %2.83 %
(1) Estimated statutory tax rate of 27.25% and 28.19% for the quarter and year ended December 31, 2025, respectively, and 28.50% for all other periods presented.
(2) For periods less than a year, ratios are annualized.
Quarter EndedYear Ended
Efficiency RatioDecember 31, 2025September 30,
2025		December 31, 2024December 31, 2025December 31, 2024
Noninterest expense(e)$129,510 $163,329 $84,449 $469,557 $345,859 
Less: intangibles amortization7,479 4,251 2,742 17,134 13,447 
Noninterest expense, excluding the impact of intangible amortization(f)122,031 159,078 81,707 452,423 332,412 
Net interest income(g)181,465 145,670 128,400 585,718 519,169 
Noninterest income (loss)(h)78,521 109,778 18,535 222,905 (139,120)
Efficiency ratio(e) / (g+h)49.8 %63.9 %57.5 %58.1 %91.0 %
Efficiency ratio (non-GAAP)(f) / (g+h)46.9 %62.3 %55.6 %55.9 %87.5 %
As of
Book Value per Share and Tangible Book Value per ShareDecember 31, 2025September 30,
2025		June 30,
2025		March 31, 2025December 31, 2024
Total shareholders’ equity(i)$2,862,375 $2,774,134 $2,416,617 $2,374,090 $2,301,868 
Less: goodwill and other intangible assets1,055,796 986,569 876,614 879,280 882,049 
Total tangible shareholders’ equity(j)$1,806,579 $1,787,565 $1,540,003 $1,494,810 $1,419,819 
Common shares outstanding-Class A and B(k)221,305,009 221,203,135 202,015,832 201,999,328 201,999,328 
Common shares outstanding-Class A220,190,561 220,088,687 200,901,384 200,884,880 200,884,880 
Common shares outstanding-Class B-adjusted11,144,480 11,144,480 11,144,480 11,144,480 11,144,480 
Shares outstanding at period end-adjusted (3)
(l)231,335,041 231,233,167 212,045,864 212,029,360 212,029,360 
Book value per share(i) / (k)$12.93 $12.54 $11.96 $11.75 $11.40 
Tangible book value per share (non-GAAP)
(j) / (l)$7.81 $7.73 $7.26 $7.05 $6.70 
(3) Includes 11,144,480 Class A Shares issuable upon the conversion of 1,114,448 Class B Shares outstanding. Class B Shares also are treated as if such share had been converted into ten Class A Shares for purposes of calculating the economic rights of the Class B Shares, including upon liquidation of the Company or the declaration of dividends or distributions by the Company.
As of
Common Equity Ratio and Tangible Common Equity RatioDecember 31, 2025September 30,
2025		June 30,
2025		March 31, 2025December 31, 2024
Total shareholders’ equity(m)$2,862,375 $2,774,134 $2,416,617 $2,374,090 $2,301,868 
Less: goodwill and other intangible assets1,055,796 986,569 876,614 879,280 882,049 
Total tangible shareholders’ equity(n)$1,806,579 $1,787,565 $1,540,003 $1,494,810 $1,419,819 
Total assets(o)$22,351,475 $22,708,820 $16,571,173 $16,540,317 $16,490,112 
Less: goodwill and other intangible assets1,055,796 986,569 876,614 879,280 882,049 
Total tangible assets(p)$21,295,679 $21,722,251 $15,694,559 $15,661,037 $15,608,063 
Common equity ratio(m) / (o)12.81 %12.22 %14.58 %14.35 %13.96 %
Tangible common equity ratio (non-GAAP)
(n) / (p)8.48 %8.23 %9.81 %9.54 %9.10 %
18
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp Fourth Quarter Earnings Presentation January 30, 2026 Seattle, WA San Francisco, CA Los Angeles, CA 1

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 FORWARD-LOOKING STATEMENTS AND OTHER This presentation and statements made by representatives of Mechanics Bancorp (“Mechanics” or the “Company”) during the course of this presentation include “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such statements. Such forward-looking statements include, but are not limited to, statements concerning such things as the Company’s outlook, business strategy, financial condition, efforts to make strategic acquisitions, integration activities and outlook, liquidity and sources of funding, market trends, operations and business, stock repurchases, dividend payments, and the Company’s other plans, objectives, strategies, expectations and intentions and other statements that are not statements of historical fact, and may be identified by words such as “anticipates,” “believes,” “building,” “continue,” “could,” “drive,” “estimates,” “expects,” “forecasts,” “goal,” “guidance,” “intends,” “may,” “might,” “outlook,” “plan,” “probable,” “projects,” “seeks,” “should,” “track,” “target,” “view” or “would” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events; failure to realize the anticipated benefits of the HomeStreet merger; our ability to effectively manage our expanded operations; negative developments and events impacting the financial services industry; the soundness of other financial institutions; our ability to maintain sufficient liquidity, or an increase in the cost of liquidity; unpredictable economic, market and business conditions; interest rate risk, and fluctuations in interest rates; inflationary pressures and rising prices; adverse changes in real estate market values; the impact of climate change, including indirectly through impacts on our customers; the adequacy of our allowances for credit losses for loans and debt securities; incurring losses in our loan portfolio despite strict adherence to our underwriting practices; fluctuations in our mortgage origination business based upon seasonal and other factors; our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn; the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans; the ability of our small- to medium-sized borrowers to weather adverse business developments; our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk; our ability to mitigate our exposure to interest rate risk; negative publicity regarding us, or financial institutions in general; environmental liability risk associated with our lending activities; our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers; our ability to develop, implement and maintain an effective system of internal control over financial reporting; the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements; the potential that we may write off goodwill and other intangible assets resulting from business combinations; dependence on our management team; exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors; legal claims and litigation, including potential securities law liabilities; employee class action lawsuits or other legal proceedings; our ability to raise additional capital, if needed; competition from other financial institutions and financial service companies; regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities; extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income; our ability to comply with stringent capital requirements; the impact of federal and state regulators’ examination of our business; our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations; our reliance on dividends from Mechanics Bank; our ability to raise debt or capital to pay off our debts upon maturity; our level of indebtedness following the completion of the HomeStreet merger; increasing and continually evolving cybersecurity and other technological risks; our ability to adapt to rapid technological change; our ability to effectively implement new technological solutions or enhancements to existing systems or platforms; our dependence on our computer and communications systems; Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval; we are a “controlled company” within the meaning of the rules of NASDAQ and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards; future sales of shares by existing shareholders could cause our stock price to decline; our reliance on certain entities affiliated with the Ford Financial Funds for services; reduced disclosure requirements as a smaller reporting company; and certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock. Disclaimer 2

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Disclaimer (cont’d) FORWARD-LOOKING STATEMENTS AND OTHER (cont’d) For further discussion of such factors, see the risk factors described in our Current Report on Form 8-K filed on September 2, 2025, subsequent Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports that we have filed with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement. The information contained herein is preliminary and based on Company data available at the time of the earnings presentation. It speaks only as of the particular date or dates included in the accompanying slides. Except as required by law, Mechanics does not undertake an obligation to, and disclaims any duty to, update any of the information herein. Included in this presentation are certain non-GAAP financial measures, such as Core Net Income, Return on Average Equity, Return on Average Tangible Equity, Efficiency Ratio, Book Value and Tangible Book Value per Share and Common Equity Ratio and Tangible Common Equity Ratio, which are designed to complement the financial information presented in accordance with U.S. GAAP as management believes such measures are useful to investors to assess use of equity and financial performance. These non-GAAP financial measures should be considered only as supplemental to, and not superior to, financial measures provided in accordance with GAAP. Please refer to the “Non-GAAP Financial Measures and Reconciliations” section of the appendix of this presentation for additional detail including reconciliations of non-GAAP financial measures included in this presentation to the most directly comparable financial measures prepared in accordance with GAAP. Presentation of Results – HomeStreet Bank Merger On September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics’ financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank’s historical financial results on a standalone basis. In addition, Mechanics’ reported financial results for the year ended December 31, 2025 reflect Mechanics Bank’s financial results on a standalone basis until the closing of the merger on September 2, 2025 and results of the combined company from September 2, 2025 through December 31, 2025. For periods prior to September 2, 2025, the number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. Adoption of Purchased Seasoned Loans Accounting Standard The Company early adopted Accounting Standards Update (“ASU”) 2025-08, “Financial Instruments–Credit Losses (Topic 326): Purchased Loans,” during the fourth quarter of 2025. This new standard, which the Company elected to early adopt as of January 1, 2025, requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses (gross-up approach). As a result, for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter. The impact of the adjustments is reflected in the fourth quarter 2025 results presented in this presentation. Required disclosures regarding the impact of the adoption and its impact on reported third quarter 2025 results will be presented when the Company files its annual report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its quarterly report on Form 10-Q for the quarter ended September 30, 2026. 3

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp 4th Quarter 2025 Financial Highlights 41 Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” in the back of this presentation Condensed Balance Sheet ($ in millions, except per share data) Q4 '25 Q3 '25 Q4 '24 Cash & Investments 6,410$ 6,347$ 5,505$ Net Loans, including HFS 14,030 14,455 9,555 Goodwill & Intangible Assets 1,056 987 882 Other Assets 855 920 548 Total Assets 22,351$ 22,709$ 16,490$ Total Deposits 19,025$ 19,453$ 13,942$ Senior Debt, Sub Debt, and TRUPs 192 190 - Other Liabilities 272 292 246 Total Shareholders' Equity 2,862 2,774 2,302 Total Liabilities & Equity 22,351$ 22,709$ 16,490$ Book value per share 12.93$ 12.54$ 11.40$ Tangible book value per share 1 7.81$ 7.73$ 6.70$ Condensed Income Statement (in thousands, except per share data) Q4 '25 Q3 '25 Q4 '24 Net Interest Income 181,465$ 145,670$ 128,400$ Provision / (Reversal of Provision) (23,476) 47,018 (4,708) Non-Interest Income 78,521 109,778 18,535 Non-Interest Expense 129,510 163,329 84,449 Pre-Tax Income 153,952$ 45,101$ 67,194$ Taxes 29,650 (10,060) 15,531 Net Income 124,302$ 55,161$ 51,663$ Diluted weighted-average shares outstanding * 221,095 207,259 200,977 Diluted earnings per share * 0.54$ 0.25$ 0.24$ * Class A Financial Ratios Q4 '25 Q3 '25 Q4 '24 ROAA 2.20% 1.18% 1.25% ROATCE 1 28.5% 14.2% 15.1% Net Interest Margin 3.47% 3.36% 3.38% Efficiency Ratio 1 46.9% 62.3% 55.6% Ending FTE 1,921 2,036 1,439 Loans to Deposits 75% 75% 69% ACL / Total Loans 1.08% 1.16% 0.92% Tier 1 Leverage Ratio 8.6% 10.3% 9.7% 4th Quarter 2025 Financial Highlights ▪ Mechanics Bancorp reported net income of $124.3mm in Q4’25 ▪ Fully diluted EPS of $0.54, BVPS of $12.93 and TBVPS of $7.811 ▪ ROAA of 2.20% and ROATCE of 28.5%1 ▪ $0.21 per share of dividends paid in Q4’25 (Class A) ▪ $55.1mm bargain purchase gain in Q4’25 due to an increase in our DUS intangible from our announced DUS business line sale ▪ $145mm total bargain purchase gain from HomeStreet ▪ Early adoption of ASU 2025-08 resulted in $20.2mm one-time negative loan loss provision; overall negative LLP of $23.5mm ▪ ACL equal to 1.08% of total loans; 2.96x ACL / NPAs ▪ $7mm NCO from legacy HMST syndicated credit; expected from due diligence and fully reserved ▪ $3.5mm of one-time merger expenses in Q4’25, down significantly from Q3’25 ▪ $59.8mm of core net income (Core ROAA of 1.06% and Core ROATCE of 14.3%)1 ▪ Total assets of $22.4bn, total net loans of $14.0bn, total deposits of $19.0bn and tangible shareholder’s equity of $1.8bn1 ▪ Legacy HomeStreet high-cost CDs and Legacy Mechanics auto loans running off as planned, releasing excess capital ▪ 14.1% CET1 ratio and 8.6% Tier 1 Leverage ratio ▪ 75% loans-to-deposits ratio ▪ 1.43% cost of deposits in Q4’25 and 1.30% spot cost at 12/31/25 ▪ 3.47% NIM in Q4’25 ▪ 344% CRE concentration ratio at 12/31/2025

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp Strategic Update 5 ➢ Integration of HomeStreet is proceeding smoothly with our core conversion scheduled for March 2026 ➢ Remain on track to deliver on our initial costs savings estimate of $82mm (~43% of HomeStreet’s 2024 NIE) and expect approximately $430mm run-rate NIE (excluding CDI amortization) for Mechanics by Q4’26 ➢ Legacy HomeStreet CD runoff is occurring as expected and on-track to reach ~$1bn+ by the end of Q1’26; Legacy HomeStreet core deposit attrition has been minimal ➢ We agreed to sell our Fannie Mae Delegated Underwriting and Servicing (“DUS”) business line to Fifth Third in early December for $130mm, inclusive of ~$28.5mm fair value of our DUS MSR as of 9/30/2025 ➢ Specialized division focused on multifamily lending and servicing under the Fannie Mae DUS program ➢ Transaction is subject to Fannie Mae’s approval and expected to close in Q1’26, with substantially all excess capital generated from the sale expected to be returned to shareholders as part of a Q2’26 dividend (subject to Board and regulatory approval) ➢ We continue to selectively manage our CRE levels down post-merger and expect our CRE Concentration ratio to drop below 300% over the coming years ➢ We are building out our Commercial Banking, Wealth Management and Treasury Sales staff across our new West Coast footprint ➢ There’s a significant opportunity to improve our client experience and peer-leading efficiency metrics by further investing in technology across the Bank ➢ We expect modest NIM expansion in 2026 and beyond as our deposit costs decline (two more rate cuts assumed) and Legacy Mechanics earning assets continue to re-price ➢ Expect to deliver >$300mm of run-rate earnings by Q4’26 (~18% ROATCE and ~1.4% ROAA in Q4’26 and 2027E) ➢ We have ~$92mm of excess capital above our 8.25% Tier 1 Leverage Ratio target as of 12/31/2025 and expect to pay an estimated $0.39 dividend in the first quarter (subject to Board and regulatory approval)

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Key Stats vs. $10–100bn public U.S. banks Mechanics Bancorp Overview Source: S&P Global Market Intelligence; Note: Financial data as of December 31, 2025, unless otherwise specified; 1 Includes banks headquartered in California, Oregon and Washington with less than $250bn in total assets CoD: 1.43% U.S. banks: 1.94% #12 of 81 NIB: 35% U.S. banks: 25% #4 of 81 RWA / Assets: 59% U.S. banks: 76% #2 of 81 ROATCE: ~18% U.S. banks: 13.9% #2 of 81 As of MRQ: CET1: 14.1% U.S. banks: 12.1% #17 of 81 ROAA: ~1.4% U.S. banks: 1.23% #23 of 81 $22.4bn Total assets 166 Branches #3 / #4 CA / West Coast market share by deposits1 Mechanics Bancorp Overview 17% 38% 28% 5% 6% $14.2bn CRE C&I 1-4 Family Cons. / Other Auto 35% 43% 7% 15% $19.0bn Noninterest- bearing Interest-bearing transaction Savings Time Loans Multifamily C&D Deposits 3% 3% 6 In runoff As of MRQ: As of MRQ: As of MRQ: 2027E: 2027E: San Francisco Oakland 880 680 680 90 5 5 Santa Barbara Bakersfield CA OR WA 8 10 40 15 5 5 90 82 182 84 105 405 210 Palm Springs San Diego Los Angeles Santa Maria Santa Barbara Bakersfield Fresno Salinas San Francisco Sacramento Yuba City Chico Redding Seattle Seattle Everett Tacoma Olympia Vancouver Portland 705 Hilo Legend Mechanics (166) HI Honolulu

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Low-Cost Deposits Deliver Superior Returns with Low-Risk Assets 7Source: S&P Global Market Intelligence Note: Financial data as of most recent quarter available; ¹ Subject to Board and regulatory approval Exceptional funding base and enterprise efficiency results in leading performance and capital returns despite low-risk asset strategy < 50% Q4’26 and 2027E Efficiency Ratio ~1.4% Q4’26 and 2027E ROAA ~18% Q4’26 and 2027E ROATCE > $300mm 2027E GAAP Earnings Substantial Dividends1 >100% 2026 payout ratio and >80% 2027E+ payout ratio expected Creates substantial capacity to deploy capital SUPERIOR RISK-ADJUSTED RETURNS 59% RWA / Assets of $10–100bn U.S. public banksCost of Deposits of $10–100bn U.S. public banks Rank: #2 of 81 LOW-RISK ASSET STRATEGY LOW-COST DEPOSIT BASE 1.43% Rank: #12 of 81

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Premier community bank in attractive West Coast markets (#3 CA and #4 West Coast bank by deposits¹) Leading profitability (~18% 2027E ROATCE, ~1.4% 2027E ROAA) Simple and efficient business model – low-risk asset strategy powered by great deposits Core-funded franchise – no wholesale funding or brokered deposits Strongly capitalized and highly liquid balance sheet (~70% 2027E L/D, ~14% 2027E CET1) Capital efficient with substantial dividend yield Strong alignment between public investors and Ford Financial Fund (74% economic ownership) Experienced management team with strong operating and M&A track records Compelling Investment Thesis ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Note: Projections per Mechanics management; ¹ Includes banks headquartered in California, Oregon, and Washington with less than $250bn total assets 8

 
Fourth Quarter 2025 Financial Drivers 26 9

 
$15.1 $15.1 $15.2 $17.2 $20.7 3.38% 3.45% 3.44% 3.36% 3.47% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Average Earning Assets NIM Net Interest Income & Margin Average Earning Assets and NIM Trends Key Highlights 10 Average Earning Assets Mix Trend ($ in billions) ➢ Q4‘25 net interest income increased $35.8 million, or 24.6%, to $181.5 million from $145.7 million for Q3‘25 ➢ Net interest margin increased 11 bps during the fourth quarter, driven primarily from higher loan yields on Multifamily and SFR loans acquired from HomeStreet and lower cost of deposits from $603 million of high- cost CD run-off and the impact of recent Fed rate cuts ➢ Q4’25 interest income included $13.1 million of discount accretion on the loans acquired in the HomeStreet acquisition (~$162 million of remaining discount on acquired HomeStreet loans at 12/31/2025) ➢ In Q4’25 the Bank early adopted ASU 2025-08 retroactively which resulted in the elimination of the credit mark on the non PCD acquired loans and established the corresponding ACL in purchase accounting ➢ Earning asset mix shift was due to lower cash balances from CD outflows and investment purchases 65% 63% 62% 64% 70% 29% 32% 29% 25% 25% 6% 5% 9% 11% 5% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Loans Investments Cash * Investments includes Securities and FHLB stock and other investments

 
Non-Interest Income Non-Interest Income Trend Non-Interest Income Mix (ex Bargain Purchase Gain) Key Highlights 11 ($ in millions) ➢ Q4’25 non-interest income decreased $31.3 million, or 28.5%, to $78.5 million from $109.8 million in Q3’25 ➢ Q4’25 includes an adjustment to the bargain purchase gain recognized on the HomeStreet acquisition of $55.1 million as a result of writing up the intangible asset associated with the DUS business line ➢ Remaining increase was due to the full quarter impact of legacy HomeStreet’s non-interest income (gain on sale of loans, servicing income, service charges, etc.) ➢ Q3’25 included the initial bargain purchase gain recognized of $90.4 million $19.4 $23.4 $90.4 $55.1 $18.5 $15.0 $19.6 $109.8 $78.5 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Non-Interest Income Bargain Purchase Gain *Other includes income from bank-owned life insurance and other income 31% 37% 28% 30% 27% 19% 21% 16% 16% 15% 1% 1% 1% 4% 8% 17% 19% 15% 18% 18% 32% 22% 40% 32% 32% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Deposit Charges Trust Fees Servicing Income ATM Network Fees Other

 
Non-Interest Expense Non-Interest Expense Trend Non-Interest Expense (ex Acquisition and Integration Costs) Key Highlights 12 ($ in millions) ➢ Q4’25 non-interest expense decreased $33.8 million, or 20.7%, to $129.5 million from $163.3 million in Q3’25 ➢ Merger-related costs during Q4‘25 were $3.5 million, compared to $63.9 million in Q3’25 and included severance, merger related professional services expense and termination of contract related expenses ➢ Excluding one-time merger-related costs, non- interest expense increased $26.5 million during Q4‘25, mainly due to full quarter impact of the operating expenses associated with Legacy HomeStreet 51% 57% 56% 54% 55% 17% 16% 17% 17% 17% 7% 6% 7% 6% 5% 3% 3% 3% 4% 6% 22% 18% 17% 19% 17% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Salaries & Benefits Occupancy & Equipment Professional Services Amortization of Intangibles Other *Other includes FDIC assessments and regulatory fees, data processing, loan related, marketing and advertising, other real estate owned related and other expense 1 Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” in the back of this presentation $84.4 $85.3 $85.4 $99.5 $126.0 $- $0.4 $5.6 $63.9 $3.5 $84.4 $85.6 $91.1 $163.3 $129.5 55.6% 57.8% 59.0% 62.3% 46.9% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Non-Interest Expense, excl Acq Costs Acquisition and Integration Costs Total NIE Efficiency Ratio 1

 
Loan Portfolio Overview Loan Balance and Yield Trends Quarter-over-Quarter Loan Metrics Key Highlights 13 9.6 9.4 9.2 14.6 14.2 9.8 9.5 9.3 11.0 14.4 5.07% 5.03% 5.16% 5.13% 5.30% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Loans Avg Loans Loan Yield ($ in billions) ($ in millions) ➢ Q4‘25 loan interest income increased $50.8 million, or 35.8%, to $192.6 million from $141.8 million in Q3‘25 ➢ Loan yields increased 17 bps in Q4‘25, driven by the full quarter impact of the loans acquired from HomeStreet ➢ Multifamily and SFR loan yields increased by 43 bps and 53 bps, respectively ➢ The Bank’s CRE concentration ratio decreased to 344% in Q4‘25 from 360% at the end of the Q3’25, driven by lower CRE balances ➢ The Bank originated $525 million of loan commitments predominantly in SFR and Other Consumer (Inclined – loans against the cash surrender value of whole life insurance policies) ➢ The Bank sold $149 million of loans during the quarter ($39 million in UPB was Legacy HomeStreet C&I syndications sold near to par with the balance of sold loans SFR) Q3 '25 Q4 '25 Balance Avg Yield Balance Avg Yield Loans HFS 55 6.60% 6 5.29% Commercial and Industrial 547 6.76% 482 5.83% Multifamily 5,448 4.66% 5,355 5.09% CRE Non-owner Occupied 1,864 5.28% 1,740 5.11% CRE Owner Occupied 709 5.52% 689 5.73% Construction and Land 536 7.56% 494 6.39% Residential Real Estate 3,907 4.57% 3,971 5.10% Auto 955 6.43% 791 6.45% Other Consumer 603 5.86% 655 5.52% Total Loans 14,624 5.13% 14,183 5.30%

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Granular, Low-Risk Commercial Lending with a Multifamily Focus ✓ Mechanics Bank’s commercial lending is highly granular and well-diversified across both collateral types and geography ✓ Focus on multifamily lending, with an emphasis on Southern California (53% of total multifamily) ▪ Average multifamily loan size of $3.9 million, with average LTV¹ of 55% and average DCR² of 1.48x ✓ Modest CRE concentrations in retail and office ▪ Average size of CRE retail and office loans are $3.2 and $2.1 million, respectively ▪ Average CRE retail LTV¹ of 48% and DCR² of 1.79x; average CRE office LTV¹ of 51% and DCR² of 1.70x ✓ Total CRE3 of ~$7.8bn, with 69% in lower risk-profile multifamily loans ▪ CRE concentration of 344% as of December 31, 2025; 107% ex-multifamily ▪ Seven CRE office loans totaling $36 million in central business districts of Los Angeles, Oakland, San Francisco and Seattle ✓ Realized a ~$7mm net charge off on a Legacy HomeStreet syndicated C&I credit in Q4’25 (identified during due diligence and fully reserved for) ▪ Sold ~$39mm in UPB ($70mm in commitments) of Legacy HomeStreet C&I syndications at par in Q4’25 ▪ Will continue to reduce HomeStreet syndicated loans over time (~$142mm in UPB at 9/30/25, ~$76mm at 12/31/25) CRE composition: Q4’25C&I breakdown: Q4’25 CRE geography: Q4’25 14 Multifamily, 69% Retail, 10% Office, 9% Industrial, 7% Special Purpose, 3% Hotel, 1% Mixed use, 1% ~$7.8bn Note: Financial data as of December 31, 2025; ¹ LTV defined as current loan balance divided by most recent appraisal; CRE LTV does not include multifamily; ² DCRs based on most recent review (origination in instances where loan is below review threshold); CRE DCRs exclude owner-user loans; 3 Total CRE excludes construction and land development Los Angeles, 31% Central Valley, 5% East Bay, 6% Central Coast, 7% San Diego, 5% Inland Empire, 7% South Bay, 5% North Bay, 3% Sacramento, 2% San Francisco, 1% Other State, 6% Orange, 4% Northern California, 2% ~$7.8bn Washington, 11% Manufacturing, 4% Utilities, 7% Real Estate Activities, 14% Retail, 8% Financials Non-Bank, 2% Entertainment / Recreation, 7%Commercial Services, 7% Construction / Contractor, 19% Healthcare / Dental, 14% Other, 18% ~$0.5bn Oregon, 5%

 
Asset Quality NCOs / Average Loans Loan Loss Reserves / NPAs NPAs / Assets Loan Loss Reserves / Loans HFI 15 * Ratios are annualized 0.39% 0.37% 0.31% 0.28% 0.15% 0.05% 0.02% 0.01% 0.04% 0.23% 0.43% 0.40% 0.32% 0.32% 0.38% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Auto NCOs / Avg Loans Non-Auto NCOs / Avg Loans 0.12% 0.11% 0.06% 0.26% 0.21% 0.04% 0.03% 0.06% 0.02% 0.02% 0.16% 0.14% 0.12% 0.29% 0.23% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Non-Auto NPAs / Assets Auto NPAs / Assets 3.34x 3.21x 3.54x 2.60x 2.96x Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Loan Loss Reserves / NPAs 0.92% 0.80% 0.74% 1.16% 1.08% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Loan Loss Reserves / Loans HFI

 
Securities Portfolio Securities Balance and Yield Trends Quarter-over-Quarter Loan Metrics Key Highlights Quarte -over-Quarte Securities Metrics 16 4.5 5.0 4.0 4.9 5.4 4.3 4.8 4.3 4.2 5.1 3.74% 4.04% 3.88% 3.76% 3.86% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Securities Avg Securities Securities Yield ($ in billions) ($ in millions) Q3 '25 Q4 '25 Balance Avg Yield Balance Avg Yield Agency MBS/CMO 3,412 3.86% 3,897 3.92% Agency CMBS 689 2.50% 683 2.77% Municipals 483 3.86% 484 4.12% Corporates 53 4.73% 50 6.39% CLOs 189 5.70% 189 5.37% Treasuries 71 3.82% 70 3.78% Agency Debentures 7 5.52% 7 5.03% Total Securities 4,904 3.76% 5,380 3.86% ➢ Q4 ‘25 securities interest income increased $9.2 million, or 23%, to $49.5 million from $40.3 million in Q3 ’25 driven by higher balances and yields ➢ The yield on the securities portfolio increased 10 bps due to the full quarter impact of the HMST acquired securities portfolio and recent purchases at higher yields ➢ The overall securities portfolio increased $475 million during the quarter and included $400 million of purchases of Agency CMO floaters

 
Deposits Overview Deposit Balance and Cost Trends Quarter-over-Quarter Loan Metrics Key Highlights Quarter-over-Quarter Deposit Metrics 17 13.9 14.0 14.0 19.5 19.0 13.9 13.8 13.9 15.8 19.2 1.38% 1.32% 1.39% 1.45% 1.43% Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Deposits Avg Deposits Deposits Rate ($ in billions) ($ in millions) Q3 '25 Q4 '25 Balance Avg Cost Balance Avg Cost Noninterest-bearing Demand 6,749 - 6,744 - Savings 1,398 0.03% 1,368 0.03% Interest-bearing Demand 1,733 0.32% 1,878 0.62% Money Market 6,186 3.08% 6,250 2.57% Time Deposits 3,387 3.14% 2,785 3.28% Total Deposits 19,453 1.45% 19,025 1.43% ➢ Q4 ‘25 deposit interest expense increased $11.5 million, or 20.0%, to $69.0 million from $57.5 million for Q3 ’25 driven by higher average balances from the HomeStreet merger ➢ Cost of deposits decreased 2 bps in Q4 ’25, driven by lower money market costs and Legacy HomeStreet Time Deposit run-off ➢ Deposit balances decreased $428 million during the fourth quarter, driven by $603 million of Time Deposit run-off, offset by $210 million of growth in Interest- Bearing Demand and Money Market ➢ Spot cost of deposits at 12/31/2025 was 1.30% (see next page for a detailed stratification)

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Details on Mechanics Bank Deposits at 12/31/2025 18Source: Mechanics management; Note: Financial data as of December 31, 2025; ¹ Represents spot rate as of December 31, 2025 Mechanics Bank Deposits ($ in millions, except account data) Segment Number of Accounts Deposit Balance ($) Deposit Balance (%) Avg Account Size ($) Relationship Weighted Age (yrs) Cost1 (%) Consumer 368,678 9,680$ 51% 26,256$ 17.9 1.35% Business 70,441 8,027 42% 113,956 16.6 1.04% Public 1,145 1,318 7% 1,151,038 27.7 2.43% Total 440,264 19,025$ 100% 43,213$ 18.0 1.30%

 
➢ Mechanics Bank’s capital ratios exceed minimums to be “well-capitalized” and meet all regulatory capital requirements and internal policy limits ➢ Available liquidity totaled approximately $17.0 billion at 12/31/25, an increase of $2.2 billion relative to 9/30/25 as additional acquired assets from HomeStreet have been pledged to the FHLB and FRB Capital and Liquidity Update Capital Ratios Trend (%) Quarter-over-Quarter Loan Metrics Key Highlights Av ilable Funding Capacity Trend 19 ($ in billions) 9.7 9.9 10.2 10.3 8.6 16.1 16.9 18.3 13.4 14.1 17.1 17.8 19.1 15.6 16.3 Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Tier 1 Leverage Tier 1 Risk-based Total Risk-based Q4 '24 Q1 '25 Q2 '25 Q3 '25 Q4 '25 Excess Reserves at FRB 0.8 0.6 1.9 1.2 0.8 FHLB, FRB & Other borrowing lines 10.4 12.1 10.6 13.2 15.8 Other Unencumbered Securities 1.8 0.5 0.7 0.4 0.4 Total 13.0$ 13.2$ 13.2$ 14.8$ 17.0$

 
Appendix 26 20

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Details on Mechanics Bank Standalone CRE Portfolio 21 Collateral Type Balance % of Owner-occupied LTV1 Avg Size Total classified Non-owner classified Owner classified Total NPL Multifamily $5,355 0% 55% $3.9 $119 $0 $0 $4 Retail 758 10% 48% 3.2 14 13 1 0 Office 710 22% 51% 2.1 58 55 2 13 Industrial / Warehouse 531 40% 45% 2.0 4 3 1 1 Special Purpose 223 62% 44% 2.4 12 0 12 0 Hotel / Motel 127 1% 48% 4.2 14 14 1 0 Mixed Use 81 19% 42% 1.4 0 0 0 0 Total $7,785 8% 53% $3.2 $221 $85 $17 $18 Collateral Type Balance 2025 2024 2023 2022 2021 2020 2019 or earlier Multifamily $5,355 1% 3% 8% 42% 23% 11% 12% Retail 758 1% 1% 1% 11% 5% 3% 78% Office 710 1% 0% 1% 18% 10% 4% 66% Industrial / Warehouse 531 3% 3% 2% 22% 11% 10% 49% Special Purpose 223 1% 0% 5% 27% 6% 4% 57% Hotel / Motel 127 0% 0% 9% 4% 21% 0% 66% Mixed Use 81 0% 0% 2% 3% 0% 7% 88% Total $7,785 1% 2% 6% 34% 18% 9% 30% CRE by collateral ($mm) CRE by collateral and origination vintage ($mm) Source: Mechanics management; Note: Financial data as of December 31, 2025; 1 LTV defined as current loan balance divided by most recent appraisal

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Details on Mechanics Bank Standalone CRE Portfolio (cont’d) 22 Collateral Type Multifamily Retail Office Industrial / Warehouse Special Purpose Hotel / Motel Mixed Use Total Collateral Type Multifamily Retail Office Industrial Special Purpose Hotel/Motel Mixed Use Total Greater than $20MM $719 $21 $45 $20 $41 $0 $0 $846 $10MM - $20MM 1,337 208 189 88 39 49 0 1,910 $5MM - $10MM 1,196 239 184 124 60 49 28 1,880 $1MM - $5MM 1,977 254 217 242 63 26 38 2,817 Less than $1MM 126 36 75 57 20 3 15 332 Total $5,355 $758 $710 $531 $223 $127 $81 $7,785 Count 1,379 238 338 267 94 30 60 2,406 Average size $3.9 $3.2 $2.1 $2.0 $2.4 $4.2 $1.4 $3.2 Source: Mechanics management; Note: Financial data as of December 31, 2025 5231 88 CRE by collateral and reset/maturity ($mm) 19% 52% 43% 36% $953 78 59 101 243 313 93 75% 48% 28% 37 $888 8 2 $1,253 CRE by loan size and collateral ($mm) Balance Balance maturing next 24 months Rate resets next 24 months Maturing & rate reset % of loans $5,355 758 710 531 223 127 81 $7,785 $83 37%

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations Return on Average Equity and Return on Average Tangible Equity 23 ($ in thousands) 1 Estimated statutory tax rate of 27.25 for quarter ended December 31, 2025, and 28.5% for all other periods 2 Ratios are annualized Return on Average Equity and December 31, September 30, December 31, Return on Average Tangible Equity Ref 2025 2025 2024 Net Income (a) 124,302$ 55,161$ 51,663$ Add: intangibles amortization, net of tax 1 5,442 3,040 1,961 Net income, excluding the impact of intangible amortization, net of tax (b) 129,744$ 58,201$ 53,624$ Average Shareholders' Equity (c) 2,792,310$ 2,541,917$ 2,297,176$ Less: average goodwill and other intangible assets 984,105 912,679 883,522 Average tangible shareholders' equity (d) 1,808,205$ 1,629,238$ 1,413,654$ Return on average equity 2 (a)/(c) 17.7% 8.6% 8.9% Return on average tangible equity (non-GAAP) 2 (b)/(d) 28.5% 14.2% 15.1% Quarter Ended

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Efficiency Ratio 24 ($ in thousands) December 31, September 30, December 31, Efficiency Ratio Ref 2025 2025 2024 Noninterest expense (e) 129,510$ 163,329$ 84,449$ Less: intangibles amortization 7,479 4,251 2,742 Noninterest expense, excluding the impact of intangible amortization (f) 122,031$ 159,078$ 81,707$ Net interest income (g) 181,465 145,670 128,400 Noninterest income (h) 78,521 109,778 18,535 Efficiency ratio (unadjusted) (e)/(g+h) 49.8% 63.9% 57.5% Efficiency ratio (non-GAAP) (f)/(g+h) 46.9% 62.3% 55.6% Quarter Ended

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Book Value and Tangible Book Value Per Share 25 ($ in thousands, except shares and per share data) 1 Includes 11,144,480 Class A Shares issuable upon the conversion of 1,114,448 Class B Shares outstanding. Class B Shares also are treated as if such share had been converted into ten Class A Shares for purposes of calculating the economic rights of the Class B Shares, including upon liquidation of the Company or the declaration of dividends or distributions by the Company. As of As of December 31, September 30, December 31, Book Value and Tangible Book Value Per Share Ref 2025 2025 2024 Total shareholders’ equity (i) 2,862,375$ 2,774,134$ 2,301,868$ Less: goodwill and other intangible assets 1,055,796 986,569 882,049 Total tangible shareholders’ equity (j) 1,806,579$ 1,787,565$ 1,419,819$ Common shares outstanding-Class A and B (k) 221,305,009 221,203,135 201,999,328 Common shares outstanding-Class A 220,190,561 220,088,687 200,884,880 Common shares outstanding-Class B-adjusted 11,144,480 11,144,480 11,144,480 Shares outstanding at period end-adjusted 1 (l) 231,335,041 231,233,167 212,029,360 Book value per share (i)/(k) 12.93$ 12.54$ 11.40$ Tangible book value per share (non-GAAP) (j)/(l) 7.81$ 7.73$ 6.70$

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Common Equity Ratio and Tangible Common Equity Ratio 26 ($ in thousands) As of As of Common Equity Ratio and December 31, September 30, December 31, Tangible Common Equity Ratio Ref 2025 2025 2024 Total shareholders’ equity (m) 2,862,375$ 2,774,134$ 2,301,868$ Less: goodwill and other intangible assets 1,055,796 986,569 882,049 Total tangible shareholders’ equity (n) 1,806,579$ 1,787,565$ 1,419,819$ Total assets (o) 22,351,475$ 22,708,820$ 16,490,112$ Less: goodwill and other intangible assets 1,055,796 986,569 882,049 Total tangible assets (p) 21,295,679$ 21,722,251$ 15,608,063$ Common equity ratio (m)/(o) 12.81% 12.22% 13.96% Tangible common equity ratio (non-GAAP) (n)/(p) 8.48% 8.23% 9.10%

 
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Non-GAAP Financial Measures and Reconciliations (cont’d) Core Net Income 27 ($ in thousands) 1 $20.2mm double-count provision adjustment. 2 $55.1mm bargain purchase gain. 3 $3.5mm one-time merger expenses. 4 Non-core adjustments and core net income reflect estimated statutory tax rate of 27.25%. 5 Ratios are annualized As Non-Core Core Core Net Income Ref Reported Adjustments Net Income Net Interest Income before Provision 181,465$ -$ 181,465$ Provision / (Reversal of Provision) 1 (23,476) (20,206) (3,270) Net Interest Income After Provision 204,941 20,206 184,735 Non-Interest Income 2 78,521 55,097 23,424 Non-Interest Expense 3 129,510 3,507 126,003 Pre-Tax Income 153,952 71,796 82,156 Taxes 4 29,650 22,388 Net Income (a) 124,302$ 59,768$ Add: intangibles amortization, net of tax 5 5,442 5,442 Net income, excluding the impact of intangible amortization, net of tax (b) 129,744 65,210 Average Assets (c) 22,433,839 22,433,839 Average tangible shareholders' equity (d) 1,808,205 1,808,205 Return on average assets 5 (a)/(c) 2.20% 1.06% Return on average tangible equity (non-GAAP) 5 (b)/(d) 28.5% 14.3% Quarter Ended December 31, 2025