AUDIT INFORMATION |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Audit Information [Abstract] | |
| Auditor Name | Crowe LLP |
| Auditor Location | Sacramento, California |
| Auditor Firm ID | 173 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Securities held-to-maturity | $ 1,170,818 | $ 1,196,000 |
| Fair Value | 5,967 | 0 |
| Fair value of single family MSRs | $ 58,095 | $ 0 |
| Common Class A | ||
| Common stock, shares authorized (in shares) | 1,897,500,000 | 1,897,500,000 |
| Common stock, shares issued (in shares) | 220,190,561 | 200,884,880 |
| Common stock, shares outstanding (in shares) | 220,190,561 | 200,884,880 |
| Common Class B | ||
| Common stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
| Common stock, shares issued (in shares) | 1,114,448 | 1,114,448 |
| Common stock, shares outstanding (in shares) | 1,114,448 | 1,114,448 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Common Class A | ||
| Dividends declared on common stock (in dollars per share) | $ 0.21 | $ 0.45 |
| Common Class B | ||
| Dividends declared on common stock (in dollars per share) | $ 2.10 | $ 4.48 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Accounting Policies [Abstract] | |
| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Mechanics Bancorp, a Washington corporation, is a financial holding company and primarily operates through 121-year-old Mechanics Bank, its wholly-owned subsidiary. Mechanics Bank is a full-service community bank with 166 branches throughout California, Washington, Oregon and Hawaii. Following the strategic Merger of HomeStreet Bank with and into Mechanics Bank on September 2, 2025, with Mechanics Bank surviving the Merger as a wholly-owned subsidiary of the Company, the assets, liabilities and operations of HomeStreet Bank became the assets, liabilities and operations of Mechanics Bank. Headquartered in Walnut Creek, California, Mechanics Bank provides 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. Prior to merging with and into Mechanics Bank on September 2, 2025, HomeStreet Bank was principally engaged in commercial banking, consumer banking, and real estate lending, including construction and permanent loans on commercial real estate and single-family residences. It also sold insurance products for consumer clients. It provided these financial products and services to its customers through bank branches, loan production offices and ATMs, and through online, mobile and telephone banking channels. The Company’s business is conducted primarily through its wholly-owned subsidiaries, Mechanics Bank and HomeStreet Statutory Trusts (I, II, III and IV), as well as Mechanics Bank’s subsidiaries: MacDonald Auxiliary Corporation, Mechanics Real Estate Holdings Inc., 3190 Klose Way, LLC, Hydrox Properties XXVI, LLC, Continental Escrow Company, HS Properties, Inc., HS Evergreen Corporate Center LLC, Union Street Holdings LLC, and 16389 Redmond Way LLC. Ceasing the origination of auto loans in February 2023, Mechanics Bank continued to service its existing auto loan portfolio until May 1, 2025, when it entered into a servicing agreement with a third-party servicer to oversee and manage Mechanics Bank’s active portfolio of auto loans. The portfolio consisted of new and pre-owned retail automobile sales contracts purchased from both franchised and independent automobile dealerships in the United States. Basis of Presentation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly-owned subsidiaries. The accounting and reporting policies of the Company are based upon U.S. GAAP and conform to predominant practices within the financial services industry. The Merger is considered a reverse acquisition in accordance with ASC 805-40, “Business Combinations-Reverse Acquisitions.” Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp, formerly HomeStreet, Inc., is the legal acquirer. Mechanics Bancorp’s financial results for all periods ended prior to September 2, 2025 reflect legacy Mechanics Bank’s results only on a standalone basis. In addition, Mechanics Bancorp’s reported financial results for 2025 reflect legacy Mechanics Bank’s financial results only on a standalone basis until the closing of the Merger on September 2, 2025 and results of the combined company for September 2, 2025 through December 31, 2025. The number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics Bancorp 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. Refer to Note 2, “Business Combination,” for additional information on the transaction. Certain prior period amounts have been reclassified to conform to the current presentation. These reclassifications had no impact on the Company’s prior year net income or shareholders’ equity. Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for credit losses. Other significant estimates that may be subject to change include fair value determinations and disclosures, evaluation of goodwill and other intangible assets for impairment, and the realization of deferred tax assets. These estimates may be adjusted as more current information becomes available, and any adjustments may be significant. Business Combinations: Purchase accounting requires that the assets purchased, the liabilities assumed, and non- controlling interests all be reported on the acquirer’s financial statements at their fair value, with any excess of purchase consideration over the net assets being reported as goodwill. A bargain purchase gain is realized when the excess of the fair value of identifiable net assets acquired is greater than the consideration paid and it is recognized in earnings on the acquisition date. Merger with HomeStreet: On September 2, 2025, Mechanics Bancorp (formerly known as “HomeStreet, Inc.”), a Washington corporation (the “Company”), consummated the Merger by and among the Company, HomeStreet Bank, a Washington state-chartered commercial bank and a wholly-owned subsidiary of the Company, and Mechanics Bank. In connection with the Merger, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the Merger and becoming a wholly-owned subsidiary of the Company. As a result of the Merger, the Company’s business became primarily the business conducted by Mechanics Bank. Immediately following the Merger, (1) legacy Mechanics Bank shareholders owned approximately 91.7% of the Company on an economic basis and 91.3% of the voting power of the Company and (2) legacy Company shareholders owned approximately 8.3% of the Company on an economic basis and 8.7% of the voting power of the Company. See Note 22, “Shareholders’ Equity and Dividend Limitations” for details of the Company’s Class A and Class B common stock, including further information on the economic rights of the Class B shares. The Merger is considered a reverse acquisition. Mechanics Bank is the accounting acquirer (“legal acquiree”), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the Merger at their acquisition date fair values. 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. Asset Sale: On December 3, 2025, Mechanics Bank and Fifth Third Bank, National Association (“Fifth Third”), a wholly- owned, indirect subsidiary of Fifth Third Bancorp, entered into an asset purchase agreement (the “Agreement”), pursuant to and subject to the terms and conditions of which Mechanics Bank has agreed to sell, and Fifth Third has agreed to purchase, Mechanics Bank’s Fannie Mae Delegated Underwriting and Servicing (“DUS”) business line (the “Transaction”), which was acquired in the HomeStreet acquisition, for cash consideration. In connection with the Agreement, Fifth Third will acquire the DUS servicing portfolio, including the DUS multifamily mortgage servicing rights. The aggregate purchase price in the Transaction is approximately $130 million, subject to adjustment for changes in the fair value at closing of the DUS multifamily mortgage servicing rights being transferred in connection with the Transaction. The closing of the Transaction is subject to customary closing conditions, including (a) approval of the Transaction by Fannie Mae and other regulatory approvals to the extent applicable, (b) the absence of any order, injunction, decree or law making the Transaction illegal or otherwise preventing the consummation of the Transaction, (c) the accuracy of each party’s representations and warranties as of the closing date, subject to materiality qualifications, and (d) each party’s performance of its covenants under the Agreement in all material respects. The sale is expected to close in the first or second quarter of 2026. Trading Securities: Trading securities, consisting of U.S. Treasury notes, are carried at fair value and are used as economic hedges of our single family mortgage servicing rights. Net gain or loss on trading securities are included in loan servicing income in the consolidated income statements. Allowances for Credit Losses on Loans Held for Investment: The Company accounts for its allowance for credit losses with an expected loss methodology that is referred to as the current expected credit loss methodology. The following discussion represents the allowance for credit losses under the CECL methodology. Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses for loans. The allowance for credit losses, or reserve, is an estimate of expected losses over the lifetime of a loan within the Company’s existing loans held for investment portfolio. The allowance for credit losses for loans held for investment is adjusted by a provision for (reversal of) credit losses, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. The credit loss estimation process involves procedures to appropriately consider the unique characteristics of the Company’s loan portfolio segments, which are further disaggregated into loan classes, the level at which credit risk is monitored. The allowance for credit losses will primarily reflect estimated losses for pools of loans that share similar risk characteristics but will also consider individual loans that do not share risk characteristics with other loans. The allowance for credit losses for loans not evaluated for specific reserves is calculated primarily using statistical credit factors, including PD and LGD, to the amortized cost or unpaid principal balance of loan exposures based on the guidance in ASC 326 as amended by ASU 2025-08, “Financial instruments–Credit Losses (Topic 326): Purchased Loans,” over their contractual life, adjusted for prepayments. Third-party provided economic forecasts are applied over the period management believes it can estimate reasonable and supportable forecasts. Reasonable and supportable forecast periods and reversion assumptions are credit model specific. Prepayments are estimated by loan type using historical information and adjusted for current and future conditions. When computing allowance levels, credit loss assumptions are estimated primarily using third-party models that analyze loans according to credit trends and risk characteristics like delinquency status, risk rating and debt service ability, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Future factors and forecasts may result in significant changes in the allowance and provision (reversal) for credit losses in those future periods. The Company utilizes a blend of economic forecast scenarios from Moody’s Analytics, specifically, the baseline, upside (“S1”), and downside (“S3”) scenarios, as key inputs in estimating our ACL. These scenarios are refreshed quarterly and provide forward-looking assumptions on key macroeconomic indicators such as Gross Domestic Product (“GDP”) growth, unemployment rates, commercial real estate conditions, interest rates and other market risk factors. Within this framework, our current expected credit loss models generate PD and LGD at the individual loan or pooled segment level. These components are modeled using borrower characteristics, loan terms, and scenario-specific economic conditions. The product of PD and LGD results in the expected credit loss for each instrument, which aggregates into the Bank’s total ACL. In addition to model-driven outputs, we incorporate qualitative adjustments where management determines other considerations may be warranted. These adjustments consider factors not fully captured in the models and are reassessed regularly to ensure reserves remain appropriate. Changes in the Company’s assumptions and economic forecasts could significantly affect its estimate of expected credit losses, which could potentially lead to significant changes in the estimate from one reporting period to the next. Collectively Evaluated Loans In estimating the allowance for credit losses for collectively evaluated loans, segments are derived based on loans pooled by product types and similar risk characteristics or areas of risk concentration. In determining the allowance for credit losses, the Company utilizes third-party models for loss forecasting for the majority of the Company’s portfolio. These models ensure that we employ methodologies and analytics for our credit loss estimations. Estimating the timing and amounts of future losses is subject to significant management judgment as these loss cash flows rely upon assumptions and estimates such as default rates, loss severities, collateral valuations, the amounts and timing of principal payments (including any expected prepayments) or other factors that are reflective of current or future expected conditions. These assumptions and estimates, in turn, depend on industry, borrower, and portfolio specific conditions or economic environments. Economic forecasts are a crucial component of our estimation process, applied over a period deemed reasonable and supportable by management. These forecasts, alongside internal and external data, credit model- specific reversion assumptions and management judgment, inform our credit loss assumptions. Model imprecision also exists in the allowance for credit losses estimation process due to the inherent time lag of available industry information and differences between expected and actual outcomes. The following models are utilized for the Company’s portfolios: Auto Loans. The Company uses models which incorporate macroeconomic forecasts and loan level models for estimating PD and prepayment. While the Company has access to national data, we use a custom model based on the Company’s internal historical data and apply them to a blend of forecasted scenarios. Based on the portfolio’s composition of loans and their respective credit characteristics (origination year, collateral type, and delinquencies) and economic variables (vehicle values, borrower income trends, and housing market conditions), a cash flow schedule of losses is produced providing the expected loss rate for the segment. Model outputs are back-tested on an ongoing basis to determine adequacy and accuracy on a quarterly basis. When multiple scenarios are considered, the results are weighted. Commercial Real Estate – Non-Owner Occupied CRE and Multifamily Loans. The Company uses models specific to non- owner occupied CRE and multifamily loans. The model addresses traditional commercial real estate products dependent on cash flow generated from rents. Based on property information (DSC, LTV, geography, and property type), loan risk characteristics (payment structure, maturity, and interest rate), and economic variables (rent, capitalization rates, vacancy rates and the CRE price index), the model generates a PD and LGD at the individual loan level over the life of the loan, producing an expected loss rate for each instrument across all future periods. Collectively, these form the overall loss rate for the portfolio segment. For each scenario, all future year losses for each instrument are calculated using adjusted PD and LGD. The sum of the discounted future losses is the allowance. When multiple scenarios are considered, the results are weighted. Single Family Residential and Home Equity Loans. The Company uses a specific model for the SFR and home equity portfolios. These portfolios represent traditional residential real estate products dependent on the borrower’s ability to service debt. Based on borrower ability to repay and underwriting metrics (FICO, LTV, loan type, geography, origination year, collateral type), the model generates loan level PD, prepayment, and LGD vectors which are then simulated through various scenario forecasts to calculate an allowance. Past due status post-origination is also a key input in the models. Current and future changes in economic conditions, including unemployment rates, home prices, index rates, and mortgage rates, are also considered. When multiple scenarios are considered, the results are weighted. Commercial & Industrial, Commercial Real Estate – Owner Occupied, and Consumer Loans. A loss rate model is utilized for the C&I, CRE Owner Occupied, and Consumer portfolios other than Auto Loans and Loans secured by the cash surrender value of life insurance. The CRE Owner Occupied segment uses the same model as the C&I portfolio because repayment is reliant upon cash flow from associated businesses operating at these properties. The C&I loss rate model considers loan age, credit spread at origination, loan size at origination, regulatory risk rating, loan type, industry sector and macroeconomic factors to determine loan level lifetime expected loss rates. When multiple scenarios are considered, the results are weighted. Qualitative Factors Management considers qualitative adjustments to reflect current conditions and reasonable and emerging supportable forecasts not already adequately reflected in quantitative expected loss rates, including but not limited to: Nature & Volume, Concentration, Control Environment, Loan Review, Management & Staffing, Regulatory, Legal & Tech Environment, Economic, and Collateral Values. In addition to these risk factors, two qualitative factors, Growth and Other Management Adjustment, were added after consideration of all relevant potential risk factors extrinsic to the quantitative expected losses. All of these estimates and assumptions require significant management judgment, and certain assumptions are highly subjective. Individually Evaluated Loans When a loan does not share similar risk characteristics with other assets, the loan’s expected credit loss is evaluated individually and no longer evaluated on a collective basis. The net realizable value of the loan is compared to the appropriate loan basis to determine any allowance for credit losses. The Company generally considers non-accrual loans to be collateral-dependent. The practical expedient to measure credit losses using the fair value of the collateral has been exercised. For collateral-dependent commercial real estate loans, the fair value of collateral is generally based on current appraisals less selling costs. For single-family residential loans that are collateral dependent, an assessment of value is made using the most recent appraisal or market sales information, less selling costs. Consumer loans are charged off when they reach 120 days delinquency as a general rule. There are limited cases where the loan is not charged off due to special circumstances and is subject to the collateral review process. Off-Balance Sheet Credit Exposures, Including Unfunded Loan Commitments Beyond an ACL to cover estimated expected credit losses in all outstanding loans, the Company provides for any binding commitments to cover estimated credit losses over the contractual period, including other off-balance sheet obligations such as letters of credit (standby), and unused commitments on lines of credits and loans. In order to calculate the allowance for credit losses on unfunded lending commitments for the collectively evaluated segments, usage rates are supported for the unfunded commitments and then multiplied against the qualitative factor adjusted expected credit loss rate of each pool. Changes in the reserve for unfunded commitments are reflected within interest payable and other liabilities on the consolidated balance sheets and provision (reversal of provision) for credit losses on unfunded lending commitments on the consolidated income statements. Purchased Credit Deteriorated (PCD) Loans: For purchased loans, the Company will consider internal loan grades, delinquency status, collateral value (if secured), vintage, financial asset type, effective interest rate, geographical location and other relevant factors in assessing whether purchased loans are PCD. Loans can be evaluated for PCD at either the individual asset level or collectively based on similar risk characteristics. Purchased loans that have experienced more than insignificant credit deterioration since origination are considered PCD loans. PCD loans are recorded at the amount paid. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses gross up becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium. The non-credit discount is accreted into interest income using the effective interest method over the remaining contractual life of the loan, adjusted for estimated prepayments. Subsequently, the allowance for credit losses is determined using the same methodology as other loans held for investment measured based on unpaid principal balance net of any amounts charged off or accounted under the cost recovery method. Subsequent changes to the allowance for credit losses are recorded through credit loss expense. Non-Purchased Credit Deteriorated (“Purchased Seasoned”) Loans: PSL are purchased loans that are either: (1) non- PCD loans that are obtained in a business combination, or (2) non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. PSL are recorded at the amount paid. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses gross up becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium. The non-credit discount is accreted into interest income using the effective interest method over the remaining contractual life of the loan, adjusted for estimated prepayments. Subsequently, the allowance for credit losses is determined using the same methodology as other originated loans held for investment measured at amortized cost. Subsequent changes to the allowance for credit losses are recorded through credit loss expense. Mortgage Servicing Rights: MSRs are recognized as separate assets on our consolidated balance sheets when we retain the right to service loans that we have sold or purchase rights to service. We initially record all MSRs at fair value. For subsequent measurements, single family MSRs are accounted for at fair value, with changes in fair value recorded through current period earnings, while multifamily and SBA MSRs are accounted for at the lower of amortized cost or fair value. Subsequent fair value measurements of MSRs are determined by considering the present value of estimated future net servicing cash flows. Changes in the fair value of MSRs result from changes in (1) model inputs and assumptions and (2) modeled amortization, representing the collection and realization of expected cash flows and curtailments over time. The significant model inputs used to measure the fair value of MSRs include assumptions regarding market interest rates, projected prepayment speeds, discount rates, estimated costs of servicing and other income and additional expenses associated with the collection of delinquent loans. Multifamily and SBA MSRs are evaluated periodically for impairment based upon the fair value of the MSRs as compared to amortized cost. Impairment is determined by comparing the fair value of the portfolio based on predominant risk characteristic loan type, to amortized cost. Impairment is recognized to the extent that fair value is less than the capitalized amount of the portfolio. For single family MSRs, loan servicing income includes fees earned for servicing the loans and the changes in fair value over the reporting period of both our MSRs and the derivatives used to economically hedge our MSRs. For other MSRs, loan servicing income includes fees earned for servicing the loans less the amortization of the related MSRs and any impairment adjustments. Goodwill and Other Intangible Assets: Goodwill arises from business combinations and is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that an impairment test should be performed. The Company has selected November 30, as the date to perform the annual impairment test. Intangible assets with finite useful lives are amortized over their estimated useful lives to their estimated residual values. Amortized intangibles must be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. An impairment loss related to intangible assets with finite useful lives is recognized if the carrying amount of the intangible asset is not recoverable and its carrying amount exceeds its fair value. After the impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Other intangible assets primarily consist of core deposit intangible assets, trade name intangibles and a DUS license and business line intangible arising from whole bank and branch acquisitions. The core deposit intangibles are amortized on an accelerated method over their estimated useful lives, which range from 6 to 10 years and the trade name intangibles and DUS license and business line intangible are not amortized as they have indefinite lives. Cash Flows: Cash and cash equivalents include cash on hand, interest-bearing deposits with other financial institutions with original maturities under 90 days, and daily federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions and Federal Home Loan Bank advances. Debt Securities: Debt securities are classified at the time of purchase as available-for-sale or held-to-maturity. Debt securities classified as HTM are recorded at amortized cost when management has the intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when management intends that they might be sold before maturity. Securities classified as AFS are carried at fair value. Unrealized holding gains and losses, net of taxes, are reported in accumulated other comprehensive income or loss on the consolidated balance sheets. Accreted discounts and amortized premiums are included in interest income using the level yield method, and realized gains or losses from sales of securities are calculated using the specific identification method. Management measures expected credit losses in accordance with ASC 326, “Financial Instruments – Credit Losses,” on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Nearly all of the mortgage-backed residential securities held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Management has determined there is a zero loss expectation for HTM debt securities given the nature of the portfolio. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors in accordance with ASC 326. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through and allowance for credit losses is recognized in AOCI. Changes in the allowance for credit losses are recorded as a credit loss expense (or reversal). Losses are charged against the allowance when management believes in the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. Management’s evaluation of any potential credit losses on the current AFS debt security portfolio is deemed immaterial. The Company may periodically reassess the classification of certain investments to determine whether a reclassification should be contemplated. If a transfer is deemed appropriate, the transfer occurs at fair value. For securities reclassified from AFS to HTM, the related unrealized gain or loss included in other comprehensive income remains in other comprehensive income, to be amortized out of other comprehensive income with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. No gains or losses are recorded at the time of transfer. Equity Securities: Equity securities consist of mutual funds held in trusts associated with deferred compensation plans for former directors and executives. These mutual funds are recorded as equity securities at fair value and are included in interest receivable and other assets on the consolidated balance sheets. Gains and losses are included in noninterest expense. Federal Home Loan Bank Stock: The Company is a member of the Federal Home Loan Bank system. Member banks are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of par value. Cash and stock dividends are reported as income when received. Bank Term Funding Program: On March 12, 2023, the Treasury Department, Federal Reserve and the FDIC jointly announced the Bank Term Funding Program in an effort to enhance liquidity by allowing institutions to pledge securities or loans as collateral for borrowing. The BTFP expired in March of 2024 making this funding source no longer available to the Company. Loans Held for Sale: Loans originated for sale in the secondary market or designated for whole loan sales are classified as LHFS. Management has elected the fair value option for all single family LHFS (originated with the intent to market for sale) and records these loans at fair value. Gains and losses from changes in fair value of LHFS and realized gains and losses from loan sales are recognized in net gain on mortgage loan origination and sale activities within other noninterest income. Direct loan origination costs and fees for single family loans originated as held for sale are recognized as noninterest expense. Multifamily and SBA LHFS are accounted for at the lower of amortized cost or fair value. LOCOM valuations are performed quarterly or at the time of transfer to or from LHFS. Gains and losses from LOCOM valuations and realized gains and losses from loan sales are recognized in net gain on mortgage loan origination and sale activities within other noninterest income. Direct loan origination costs and fees for multifamily and SBA loans classified as held for sale are deferred at origination and recognized in gain on sale in earnings at the time of sale. Loan Receivables: Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are recorded at the principal balance outstanding, net of charge-offs, unamortized purchase premiums and discounts and unamortized deferred loan fees and costs. The deferred loan fees and costs, as well as purchase premiums and discounts, are recognized in interest income as an adjustment to yield over the term of loans using the effective interest method. Interest on loans is credited to interest income as earned based on the interest rate applied to principal amounts outstanding. Interest income is accrued on the unpaid principal balance and is discontinued when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes doubtful, regardless of the length of past due status. Generally, loans are placed on nonaccrual status when their payments are past due for 90 days or more. When interest accruals are discontinued, all unpaid accrued interest is reversed against interest income. Interest received on such loans is accounted for on the cash- basis or cost-recovery method, until qualifying for return to accrual. A charge-off is generally recorded at 180 days past due if the unpaid principal balance exceeds the fair value of the collateral less costs to sell. Commercial and industrial loans and commercial real estate loans are subject to a detailed review when 90 days past due to determine accrual status, or when payment is uncertain and a specific consideration is made to put a loan on non-accrual status. Consumer loans, other than those secured by real estate, are typically charged off no later than 180 days past due. Loans are returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan. Loans acquired in our acquisitions are initially measured and recorded at their fair value on the acquisition date. A component of the initial fair value measurement is an estimate of the credit losses over the life of the purchased loans. Purchased loans are also evaluated to determine if they have experienced a more-than-insignificant deterioration in credit quality since origination or issuance as of the acquisition date and are classified as either (i) loans purchased without evidence of deteriorated credit quality (“non-PCD loans”), or (ii) loans purchased that have experienced a more-than- insignificant deterioration in credit quality, referred to as PCD loans. Acquired non‑PCD loans are those loans for which there was no evidence of a more-than-insignificant credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments. Acquired non‑PCD loans, together with originated loans, are referred to as non‑PCD loans. Prior to the adoption of ASU 2025-08, non-PCD loans are recorded at fair value at the acquisition date, with the resulting credit and non-credit discount or premium being amortized or accreted into interest income using the interest method. Purchase discounts or premiums on acquired non‑PCD loans are recognized as an adjustment to interest income over the contractual life of such loans using the effective interest method or taken into income when the related loans are paid off or sold. Acquired financial assets with credit deterioration (PCD assets) are recorded at the purchase price plus the allowance for credit losses expected at the time of acquisition. Acquired PCD loans are initially recorded at fair value, with the resulting non-credit discount or premium being amortized or accreted into interest income using the interest method. The credit allowance is recognized through a gross-up that increases the amortized cost basis of the asset with no effect on net income. Subsequent to the acquisition date, the allowance for credit losses for both PCD and non-PCD loans is estimated using the same methodology to determine current expected credit losses that is applied to all other loans. Classified Assets: Federal regulations provide for the classification of loans and other assets, such as debt and equity securities considered to be of lesser quality, as “substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. When an insured institution classifies problem assets as “loss,” it is required to charge off or provide a specific reserve for such amount. The Company’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by its primary regulator, which may require the establishment of additional general or specific loss allowances. Modifications to Borrowers Experiencing Financial Difficulty: When a borrower experiences financial difficulty, the Company may provide a modification or restructure for the purpose of alleviating temporary impairments to the borrower’s financial condition or cash flows. These modified or restructured loans are classified as MBFDs. MBFDs may include other than insignificant delays in payment of amounts due, forgiveness of principal, extension of the terms of the loan, or a reduction in the interest rate on the loans. In certain instances, the Company may grant more than one type of modification. The granting of modifications for 2025 and 2024 did not have a material impact on the ACL. Derivative Instruments and Hedging Activities: In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The fair value of derivative instruments are recognized as either assets or liabilities on the consolidated balance sheets. All derivatives are evaluated at inception as to whether or not they are hedge accounting or non-hedge accounting activities. For derivative instruments designated as non-hedge accounting activities (also referred to as economic hedges), the change in fair value is recognized currently in earnings. Gains and losses on derivative contracts utilized for economically hedging the mortgage pipeline are recognized as part of the net gain on mortgage loan origination and sale activities within other noninterest income. Gains and losses on derivative contracts utilized for economically hedging our single family MSRs are recognized as part of loan servicing income within noninterest income. Derivative instruments expose the Company to credit risk in the event of nonperformance by counterparties. This risk consists primarily of the termination value of agreements where the Company is in a favorable position. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, as appropriate. The Company also executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are economically hedged by simultaneously entering into an offsetting interest rate swap that the Company executes with a third party, such that the Company minimizes its net risk exposure. Other Real Estate Owned: Other real estate owned, which represents real estate acquired through foreclosure of real estate related loans, is initially recorded at fair value less estimated selling costs of the real estate. This valuation is based on current independent appraisals obtained at the time of acquisition, less costs to sell when acquired, thus establishing a new carrying value. Loan balances in excess of carrying value of the real estate acquired at the date of acquisition are charged to the allowance for credit losses. Any subsequent operating expenses or income of such properties as well as gains and losses on the sale of OREO are included in noninterest expense on the consolidated income statements. Premises and Equipment: Land is carried at cost. Buildings and equipment are stated at cost less accumulated depreciation. Estimated useful lives of buildings and equipment are from 10 to 30 years and from 3 to 10 years, respectively. Depreciation is computed generally on a straight-line basis. Leasehold improvements are amortized over the shorter of the original lease term or their economic useful lives. The Company periodically evaluates premises and equipment for impairment. Leases: We determine if an arrangement is a lease at inception. Operating leases are included in lease right-of-use assets, and lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The lease liability is recognized at commencement date based on the present value of lease payments over the lease term. The right-of-use asset is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as prepaid rent, lease incentives and deferred rent. As the rate implicit in most of our leases are not readily determinable, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease contract at commencement date. We have lease agreements with lease and non-lease components, which are generally accounted for separately for real estate leases. Certain of our lease agreements include rental payments that adjust periodically based on changes in the Consumer Price Index. Subsequent increases in the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. The ROU assets and lease liabilities are not re-measured as a result of changes in the CPI. Lease expense for operating leases is recognized on a straight-line basis over the lease term. We use the long-lived assets impairment accounting guidance to determine whether an ROU asset is impaired, and if impaired, the amount of loss to recognize. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These could include vacating the leased space, obsolescence, or physical damage to a facility. If an impairment loss is recognized for a ROU asset, the adjusted carrying amount of the ROU asset would be its new accounting basis. The remaining ROU asset (after the impairment write-down) is amortized on a straight-line basis over the remaining lease term. Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key current and former executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Low Income Housing Tax Credit and Community Reinvestment Act Investments: As part of the CRA portfolio, the Company invests in qualified affordable housing projects and LIHTC investments that are designed to promote qualified affordable housing programs and generate a return primarily through the realization of federal tax credits. These investments are accounted for using the proportional amortization method. The investment balances are included in interest receivable and other assets on the consolidated balance sheets. Off-Balance Sheet Instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to make loans and commercial letters of credit, and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded in the financial statements when they are funded. Impairment of Long-Lived Assets: The Company reviews its long-lived assets for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Share-Based Compensation: Stock-based compensation expense for all share-based awards granted is based on the grant date fair value estimated in accordance with the provisions of ASC 718, “Stock Compensation.” The Company recognizes these compensation costs for only those awards expected to vest over the service period of the award. Forfeitures are recognized when they occur. The 2025 Equity Plan, adopted by shareholders in August 2025, provides for the issuance of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance awards, dividend equivalent awards and other awards. All share-based awards that are granted after the Merger date will be issued under the 2025 Equity Plan. As of December 31, 2025, only RSUs have been granted under the 2025 Equity Plan. Total shares issuable under the 2025 Equity Plan are 7,315,390, excluding shares that may be delivered pursuant to outstanding awards under prior plans. Any share-based awards outstanding as of the Merger date are considered outstanding under prior plans of legacy HomeStreet, Inc. and legacy Mechanics Bank, as appliable. No additional awards may be made under the prior plans, but prior plans remain in effect as to outstanding awards. Outstanding awards under the prior plans continue to be subject to the terms and conditions of their respective plan. In connection with Mechanics Bank becoming a wholly-owned subsidiary of the Company, which is publicly traded, and the stock of Mechanics Bank being exchanged for shares of Class A common stock of the Company as a result of the Merger, the Company has elected to settle share-based compensation awards in Class A common stock of the Company that were outstanding following the Merger that historically were settled in cash by Mechanics Bank. Accordingly, during 2025, the Company modified the classification of these outstanding awards from liability to equity. These outstanding awards also were remeasured at the modification date fair value, and the previously recognized liability was reclassified to common stock within the consolidated balance sheets. Compensation cost for these remeasured awards will be recognized over the remaining applicable award vesting period. Earnings per Share: The Company has two classes of common stock and, as such applies the “two-class method” of computing earnings per share in accordance with ASC 260, “Earnings Per Share.” Earnings are allocated in the same manner as dividends would be distributed. The Company’s common shareholders are entitled to equally share in all dividends and distributions based on such shareholders’ pro rata ownership interest in the Company, except that each share of Class B common stock is 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. Basic earnings per share excludes potential dilution from common equivalent shares, such as those associated with stock-based compensation awards, and is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as common equivalent shares associated with stock-based compensation awards, were exercised or converted into common stock that would then share in the net earnings of the Company. Potential dilution from common equivalent shares is determined using the treasury stock method, reflecting the potential settlement of stock-based compensation awards resulting in the issuance of additional shares of the Company’s common stock. Stock-based compensation awards that would have an anti- dilutive effect have been excluded from the determination of diluted earnings per share. Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of a loss is probable and an amount or range of loss can be reasonably estimated. The Company is occasionally named as a defendant in or threatened with claims and legal actions arising in the ordinary course of business. The outcomes of claims and legal actions brought against the Company are subject to many uncertainties. For claims and legal actions where it is not reasonably possible that a loss may be incurred, or where the Company is not currently able to estimate the reasonably possible loss or range of loss, the Company does not establish an accrual. Any potential recoveries from insurance are not considered when determining an accrual. Income Taxes: The Company’s accounting for income taxes is based on an asset and liability approach. The Company recognizes the amount of taxes payable or refundable for the current year, and recognizes deferred tax assets and liabilities for the future tax consequences for transactions that have been recognized in the Company’s consolidated financial statements or tax returns. The measurement of tax assets and liabilities is based on enacted tax laws and rates. A valuation allowance, if needed, will reduce deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, based upon the technical merits of the position, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense (benefit) on the consolidated income statements. Fair Value: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value is an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular instruments. Fair value measures are classified according to a three-tier fair value hierarchy, which is based on the observability of inputs used to measure fair value. Changes in assumptions or in market conditions could significantly affect these estimates. Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and the equity component of the AFS to HTM debt security transfer discussed in Note 3, “Debt Securities.” In addition, changes in the funded status of the pension plan and supplemental retirement plans are also recognized as separate components of equity. Segments: The Company has one reportable segment: community banking. The segment primarily encompasses the commercial loan and deposit activities of the Company as well as retail lending and deposit activities in areas surrounding the branches. Our CODM, the Chief Executive Officer, manages the Company’s business activities as one single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes net interest income, noninterest income and noninterest expenses (salary and employee benefits, occupancy, equipment and general, administrative and other) at the consolidated level to manage the Company’s operations. Other Significant Events and Transactions: The Company has had no other significant events other than the above reverse merger during the periods represented in the consolidated financial statements. Recent Adopted Accounting Guidance In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which expands disclosures in an entity’s income tax rate reconciliation table and taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. For the year ended December 31, 2025, the Company retrospectively adopted the annual disclosure requirements of ASU 2023-09, except for the expanded disclosure requirements, the adoption of this guidance had no impact on the Company's consolidated financial statements. See Note 17, “Income Taxes” for applicable income tax-related disclosures required by this guidance. In November 2025, the FASB issued ASU 2025-08, “Financial Instruments – Credit Losses (Topic 326): Purchased Loans,” which amends the guidance in ASC 326 on the accounting for certain purchased loans. ASU 2025-08 is effective for interim and annual reporting periods beginning after December 15, 2026. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. In the fourth quarter of 2025, the Company early adopted ASU 2025-08 which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (gross-up approach). Purchased seasoned loans are defined as either: (1) non-PCD loans that are obtained in a business combination, or (2) non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. The Company applied the guidance effective as of January 1, 2025. 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 of 2025, and recorded it as part of the acquired loans initial amortized cost basis. The impact of the adjustments from the adoption of this ASU as of September 30, 2025, and for the three and nine months ended September 30, 2025 is presented in Note 26, “Quarterly Financial Data.” Recent Accounting Developments In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. In January 2025, the FASB also issued ASU 2025-01, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures-Clarifying the Effective Date,” which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The enhanced income statement expense disclosure requirements apply on a prospective basis. However, retrospective application in all prior periods presented is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. The adoption of ASU 2024-03 and ASU 2025-01 will not have an impact on the Company’s financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.
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| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BUSINESS COMBINATION | BUSINESS COMBINATION As discussed in Note 1, “Summary of Significant Accounting Policies,” on September 2, 2025, the Merger by and among Mechanics Bancorp (formerly known as HomeStreet, Inc.), HomeStreet Bank and Mechanics Bank was consummated. In connection with the Merger, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the Merger and becoming a wholly-owned subsidiary of Mechanics Bancorp. The Merger is considered a reverse acquisition in which Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. 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. In connection with the Merger, each share of common stock, par value $50 per share, of Mechanics Bank voting common stock issued and outstanding was converted into 3,301.0920 shares of the Company’s Class A common stock, no par value, and existing shares of the Company common stock held by legacy Company shareholders were redesignated as the Company’s Class A common stock. In addition, each share of common stock, par value $50 per share, of Mechanics Bank non-voting common stock was converted into 330.1092 shares of the Company’s Class B common stock, no par value. Class A common stock, which was previously known as Company common stock and was previously listed on Nasdaq and traded under the symbol “HMST” through the close of business on August 29, 2025, commenced trading on Nasdaq under the ticker symbol “MCHB” on September 2, 2025. Immediately following the Merger, (1) legacy Mechanics Bank shareholders owned approximately 91.7% of the Company on an economic basis and 91.3% of the voting power of the Company and (2) legacy Company shareholders owned approximately 8.3% of the Company on an economic basis and 8.7% of the voting power of the Company. The Merger was accounted for as a reverse acquisition, with the purchase price determined based on the number of equity interests the legal acquiree would have had to issue to give the owners of the legal acquirer the same percentage equity interest in the combined entity that results from the reverse acquisition. Therefore, the first step in calculating the purchase price is to determine the ownership of the combined company following the Merger. The table below shows the calculation to determine the ownership of the Company following the Merger using shares of Company common stock and Mechanics Bank common stock outstanding as of September 2, 2025, and the fixed exchange ratio of 3,301.0920 applied to shares of outstanding Mechanics Bank voting common stock and 330.1092 to shares of outstanding Mechanics Bank non-voting common stock.
The following table provides the preliminary purchase price allocation and the assets acquired and liabilities assumed at their estimated fair values as of the Merger date, resulting in a preliminary bargain purchase gain of $145.5 million. The preliminary bargain purchase gain resulted from a combination of factors. First, HomeStreet was an unprofitable company, losing $27.5 million after-tax in 2023, $144.3 million after-tax in 2024 and $8.9 million reported across the first two quarters of 2025. As such, public market investors priced its shares at a significant discount to HomeStreet’s reported tangible book value. Second, HomeStreet was subject to a failed merger attempt with FirstSun Capital Bancorp in 2024. This failed merger occurred due to an inability to obtain regulatory approval. Any failed merger may cause difficulty retaining key employees, which may have contributed to HomeStreet’s desire to find a new merger partner quickly. Third, HomeStreet recorded a valuation allowance in 2024 against its deferred tax asset due to uncertainty surrounding its prospects of achieving future profitability. However, Mechanics Bancorp is a profitable company and expects to be able to utilize the deferred tax assets acquired from HomeStreet over time. $60.0 million of the net assets acquired from HomeStreet came from deferred tax assets, which significantly contributed to the $145.5 million preliminary bargain purchase gain. The estimates of fair value were recorded based on initial valuations at the Merger date and these estimates are considered preliminary as of December 31, 2025, and are subject to adjustment for up to one year after the Merger date, and any changes could be material. In many cases, the determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Additional information may be obtained during the measurement period that could result in changes to the estimated fair value amounts, and that could result in adjustments to the valuation amounts presented herein. The Company’s taxes are provisional along with the DUS valuation and review of certain contracts assumed in the Merger. The measurement period ends on the earlier of one year after the Merger date or the date the Company concludes that all necessary information about the facts and circumstances that existed as of the Merger date have been obtained.
(1)Revised for the adoption of ASU 2025-08. See Note 26, “Quarterly Financial Data (Unaudited)” for details of the impact of the adoption for the quarter and nine months ended September 30, 2025. (2)Consists of $100.2 million of a DUS license and business line intangible and $90.8 million of core deposit intangibles assets. During the quarter ended December 31, 2025, the Company obtained additional information regarding facts and circumstances that existed as of the September 2, 2025 acquisition date. As a result, the Company recorded measurement period adjustments to provisional amounts recognized in the opening balance sheet. The adjustments include an increase to other intangible assets related to the DUS intangible of $77 million and a reduction to deferred tax assets of $21 million. The net impact of these adjustments increased the recognized bargain purchase gain by $55 million, which is reflected retrospectively in the Company’s consolidated financial statements as of the acquisition date. The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above. Cash and cash equivalents: The carrying amount of these assets is a reasonable estimate of fair value based on the short- term nature of these assets. Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair value estimates are based on observable inputs including quoted market prices for similar instruments, quoted market prices that are not in an active market or other inputs that are observable in the market. In the absence of observable inputs, fair value is estimated based on pricing models and/or discounted cash flow methodologies. Loans held for sale: The loans held for sale portfolio was recorded at fair value based on quotes or bids from third party investors and/or recent sale prices. Loans held for investment: A valuation of the loans held for investment portfolio was performed by a third party as of the Merger date to assess the fair value. The loans held for investment portfolio were segmented into three groups, including performing PCD loans, non-performing PCD loans and PSL. Non-performing PCD loans were evaluated based on individual risk characteristics such as nonaccrual status. A subset of the performing PCD loans were collectively assessed for PCD designation based on their vintage and financial asset type. Certain commercial real estate loans with an unpaid principal balance of $2.4 billion, which were originated during the COVID pandemic period between March 2020 and May 2023, have experienced more than insignificant credit deterioration since origination as a collective. This population of loans is characterized by a historically low-interest rate environment at origination and rates have since risen significantly as of the acquisition date, which has impacted this loan population’s creditworthiness as a result of declining collateral values and debt-service coverage ratios. The ACL related to these COVID pandemic period loans at the Merger date was $29.5 million. The loans were further pooled based on loan type and risk rating bands. Most of the loans were valued at the loan level using a discounted cash flow methodology. The methodology included projecting cash flows based on the contractual terms of the loans and the cash flows were adjusted to reflect credit loss expectations along with prepayments. Discount rates were developed based on the relative risk of the cash flows, taking into consideration the loan type, market rates as of the valuation date, recent originations in the portfolio, credit loss expectations, and liquidity expectations. Lastly, cash flows adjusted for credit loss expectations were discounted to present value and summed to arrive at the fair value of the loans. Other loans were valued based on recent quotes, bids or recent sale prices of similar loans and for one loan portfolio it was concluded the fair value equaled the portfolio's par value due to the short-term nature of the loan product, combined with the low expected credit losses and the variable interest rates being at market. Of the loans held for investment acquired, $3.0 billion were identified as PCD loans on the Merger date. The following table provides a summary of these PCD loans at acquisition:
Of the loans held for investment acquired, $2.9 billion were identified as PSL on the Merger date. The following table provides a summary of loans considered PSL at acquisition:
Mortgage servicing rights: The fair values of single family mortgage and SBA servicing rights are based on an income approach, developed by a third party. The fair values of non-DUS multifamily and DUS servicing rights are based on an income approach, developed by internal models. Premises and equipment: The fair values of premises are based on a market approach, by obtaining third-party appraisals and broker opinions of value for land, office and branch space. Other intangible assets: Core deposit intangibles assets of $90.8 million were recognized as a result of the Merger. Core deposit intangible assets values were determined by an analysis of the cost differential between the core deposits inclusive of estimated servicing costs and alternative funding sources for core deposits acquired through business combinations. The core deposit intangible assets recorded are amortized on an accelerated basis over a period of 8 years. No impairment losses separate from the scheduled amortization have been recognized in the periods presented. Other intangibles acquired of $100.2 million related to a DUS license and business line was recognized related to the Merger. The updated value of the DUS license and business line intangible was determined based on the asset purchase agreement between Mechanics Bank and Fifth Third entered into on December 3, 2025, in which Mechanics Bank has agreed to sell, and Fifth Third has agreed to purchase, Mechanics Bank’s Fannie Mae DUS business line acquired in the Merger. In connection with the Agreement, Fifth Third will acquire the DUS servicing portfolio, including the DUS multifamily mortgage servicing rights. The aggregate purchase price for the DUS business line is estimated to be approximately $130 million, subject to adjustment for changes in the fair value at closing of the DUS multifamily MSRs being transferred in the purchase. The value of the DUS license and business line intangible reflects the sales price, less the estimated value of DUS multifamily MSRs and estimated brokerage fees. Current and deferred tax assets, net: The acquired net tax assets represent the estimated amount of tax benefits to be recognized on tax returns. Deposits: The fair values used for the demand and savings deposits equal the amount payable on demand at the Merger date. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered to the contractual interest rates on such time deposits. Borrowings: The fair values of FHLB advances and long-term debt instruments are estimated based on quoted market prices for the instrument if available, or for similar instruments if not available, or by using discounted cash flow analyses, based on current incremental borrowing rates for similar types of instruments. The Company’s operating results for 2025 include the operating results of the acquired assets and assumed liabilities of historical HomeStreet, Inc. subsequent to the Merger date. The following table shows the amount of the expenses related to the Merger for 2025:
From the Merger date through December 31, 2025, HomeStreet contributed approximately $100 million of revenue (consisting of net interest income and noninterest income) to the Company’s consolidated results. Pro-Forma Financial Information (Unaudited) The following unaudited pro forma consolidated financial information reflects the results of operations of the Company for 2025 and 2024, respectively, as if the Merger had been completed on January 1, 2024, after giving effect to certain purchase accounting adjustments, primarily related to the preliminary bargain purchase gain, amortization of intangible assets and non-recurring transaction costs. These pro forma results have been prepared for comparative purposes only and are based on estimates and assumptions that have been made solely for purposes of developing such pro forma information and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period.
(1)The pro forma net income before income taxes includes $73.4 million of acquisition and integration costs from the Merger for 2024.
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DEBT SECURITIES |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT SECURITIES | DEBT SECURITIES The following table presents the amortized cost and fair value of the debt securities portfolio as of the dates indicated:
In addition to the reported fair values of the debt securities reflected above, the Company is entitled to receive accrued interest and dividends from its securities. Included in on the consolidated balance sheets as of December 31, 2025 and 2024 was $20.2 million and $15.9 million, respectively, of interest and dividends receivable from the Company’s debt securities. Accrued interest receivable from securities available-for-sale totaled $17.8 million and $13.6 million at December 31, 2025 and 2024, respectively. Accrued interest receivable from securities held-to-maturity totaled $2.2 million and $2.4 million at December 31, 2025 and 2024, respectively. Substantially all the mortgage-backed securities represent securities issued or guaranteed by government sponsored enterprises and government entities. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by either collateral or revenues from the specific project being financed) issued by various municipal and corporate entities. As of December 31, 2025 and 2024, substantially all securities held, including municipal bonds, corporate debt securities, and collateralized loan obligations were rated investment grade based upon nationally recognized statistical rating organizations where available. At December 31, 2025, the Company held $49.5 million of trading securities, consisting of U.S. Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and reported as trading securities on the consolidated balance sheets. For 2025, net gains of $144 thousand on trading securities were recorded in loan servicing income. At December 31, 2024, there were no trading securities, and there were no net gains or losses on trading securities for 2024. In accordance with accounting standards, only the realized gains and losses from securities transactions are included in the consolidated income statements as net gain (loss) on sale of investment securities. In 2025, investment securities were sold primarily to generate liquidity for the Merger. During the first quarter of 2024, the Company executed an investment portfolio restructuring of its AFS investment securities portfolio. The Company sold $1.8 billion of lower yielding AFS securities and realized a loss of $207.2 million. The proceeds from the sale were used to purchase $1.6 billion of higher yielding investments. No gross gains were realized on the sales. The following table presents proceeds, gross realized gains and gross realized losses from sales and calls of available-for- sale investments:
Tax-exempt interest income on investment securities was $7.8 million and $3.1 million for 2025 and 2024, respectively. The Company reassessed classification of certain investments and effective January 1, 2022, transferred $1.7 billion in residential and commercial mortgage-backed securities from available-for-sale to held-to-maturity securities. The transfer occurred at fair value. The related net unrealized loss of $23.5 million, or $16.7 million net of deferred taxes, included in accumulated other comprehensive income remained in accumulated other comprehensive income. For 2025 and 2024, $2.5 million and $2.6 million, respectively, of the unrealized loss was accreted to interest income as a yield adjustment through earnings and will be accreted over the remaining term of the securities. No gain or loss was recorded at the time of transfer. The following table summarizes available-for-sale securities with unrealized losses at December 31, 2025 and 2024 aggregated by major security type and length of time in a continuous unrealized loss position:
The Company did not record an ACL on the debt securities portfolio at December 31, 2025 and 2024. As of both dates, the Company considers any unrealized or unrecognized loss across the classes of major security-type to be related to fluctuations in market conditions, primarily interest rates, and not reflective of a deterioration in credit quality. The Company maintains that it has the intent and ability to hold these securities until the amortized cost basis of each security is recovered, which may be at maturity, and likewise concluded as of December 31, 2025, that it was not more likely than not that any of the securities in an unrealized loss position would be required to be sold. The following factors were considered in determining that an ACL was not required at December 31, 2025 and 2024. Obligations of States and Political Subdivisions: The unrealized losses on the Company’s investments in obligations of states and political subdivisions are primarily due to changes in interest rates and not due to credit losses. Management monitors these securities on an ongoing basis and performs an internal analysis which takes into account the impact from market rates movements, severity and duration of the unrealized loss position, viability of the issuer, recent downgrades in ratings, and external credit rating assessments. As a result, management expects to recover the entire amortized cost basis of these securities. Mortgage-Backed Securities - Residential and Commercial: The unrealized losses on the Company’s investments in residential and commercial MBS are primarily due to changes in interest rates. These securities are either implicitly or explicitly guaranteed by the U.S. government, as such management expects to recover the entire amortized cost basis of these securities. Collateralized Loan Obligations: The unrealized losses on the Company’s collateralized loan obligations are primarily due to slightly wider spreads. Management conducts ongoing monitoring of these securities including analysis of credit enhancement and performance of the underlying collateral. Management expects to recover the entire amortized cost basis of these securities. Corporate Bonds: The unrealized losses on the Company’s investments in corporate bonds are due to slight discount margin variances related to changes in market rates and not due to credit losses. Management monitors these securities on an ongoing basis and performs an internal analysis which includes a review of credit quality, changes in ratings, assessment of regulatory and financial ratios, and general standing versus peer group. Management expects to recover the entire amortized cost basis of these securities. U.S. Treasury Securities: There were no unrealized losses on the Company’s U.S. Treasury securities. Agency Debentures: The unrealized losses on the Company’s investments in agency debentures are primarily due to changes in interest rates. These securities are either implicitly or explicitly guaranteed by the U.S. government, as such management expects to recover the entire amortized cost basis of these securities. At December 31, 2025, investment securities with a carrying value of $3.4 billion were pledged to secure borrowings from the Federal Reserve, and investment securities with a carrying value of $1.7 billion were pledged to secure the Company’s obligations to collateralize certain public, trust and bankruptcy deposits as required by law. As of December 31, 2025, there were no past due or nonaccrual available-for-sale or held-to-maturity securities. The fair value of available-for-sale securities and the amortized cost and fair value of held-to-maturity debt securities are shown by contractual maturity in the following tables. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Contractual maturities of securities as of December 31, 2025, were as follows:
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LOANS AND CREDIT QUALITY |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LOANS AND CREDIT QUALITY | LOANS AND CREDIT QUALITY The loan receivables portfolio consisted of the following as of the dates indicated:
At December 31, 2025, $10.5 billion of loans were pledged to secure borrowings from the FHLB, and $1.3 billion of loans were pledged to secure borrowings from the Federal Reserve. Credit Risk Concentrations The Company’s portfolio of non-owner occupied and owner occupied commercial real estate, multifamily and residential real estate loans are primarily to borrowers in California, or are secured by real estate collateral located in California. Such loans represented 76% of total loans in these segments as of December 31, 2025. In addition, substantial portions of the Company’s loans are multifamily and residential real estate. At December 31, 2025, multifamily loans represented 38% of the loan portfolio and residential real estate loans represented 28% of the loan portfolio. Allowance for Credit Losses The following tables present the activity in the allowance for credit losses on loans by portfolio segment for 2025 and 2024.
(1)ACL on loans identified as PCD and PSL on the Merger date. For additional discussion on PCD loans and PSL, refer to Note 1, “Summary of Significant Accounting Policies,” and Note 2, “Business Combination.”
In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments, which is included in interest payable and other liabilities on the consolidated balance sheets. The following table presents changes in the allowance for credit losses on unfunded lending commitments for the years indicated:
Management considers the level of ACL to be appropriate to cover credit losses expected over the life of the loans for the LHFI portfolio. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company’s quantitative and qualitative expected losses for current and forecasted periods. As of December 31, 2025, the quantitative expected loss rates decreased when compared to December 31, 2024, due to the HomeStreet acquisition and the continued runoff of the auto portfolio. During 2025, the qualitative factors increased due to increased concentration, control environment and other nature and volume risk. There were no material changes to the methodologies for estimating credit losses for the periods presented. Disclosures related to the amortized cost of loans excludes accrued interest receivable. The Company has elected to exclude accrued interest receivable from the evaluation of the allowance for credit losses. Accrued interest receivable on loans held for investment was $53.1 million and $33.6 million at December 31, 2025 and 2024, respectively, and is included in on the consolidated balance sheets. Credit Quality Nonaccrual loans include both individually evaluated loans and smaller balance homogeneous loans that are collectively evaluated. Loans whose repayments are insured by the Federal Housing Administration, or guaranteed by the Department of Veterans’ Affairs or Ginnie Mae, are maintained on accrual status even if 90 days or more past due. The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of December 31, 2025 and 2024:
The following table presents the amortized cost of collateral-dependent loans by class and collateral type as of December 31, 2025 and 2024:
The following tables present the aging of the amortized cost in past due loans as of December 31, 2025 and 2024 by class of loans:
The following tables present the amortized cost of loans at December 31, 2025 and 2024 that were both experiencing financial difficulty and modified during 2025 and 2024, by class and by type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each class of financing receivable is also presented below.
The Company has committed to lend no additional amounts to the borrowers included in the previous tables. The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for 2025 and 2024:
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. For loan modifications to borrowers experiencing financial difficulty for 2025 and 2024, the following tables present the payment status of loans that were modified in the last 12 months, with related amortized cost balances, as of the dates indicated:
The following table presents the amortized cost of loans that had a payment default (i.e. borrower missed a regularly scheduled payment) and were past due for 2025 and that were modified in the last 12 months.
There were no loans that had a payment default and were past due for 2024 and that were modified in the last 12 months. Upon the Company’s determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is written off. Therefore, the amortized cost of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. Credit Quality Indicators: The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, current economic trends and other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes all loans regardless of balances. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Mention. Loans designated as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above are considered to be pass rated loans. The following table presents the amortized cost by loan risk category and origination year for commercial and industrial and commercial real estate loan classes at December 31, 2025 and 2024. In addition, year-to-date charge-offs for 2025 and 2024 are presented by origination year.
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in residential and consumer loans based upon year of origination at December 31, 2025 and 2024. In addition, year-to-date charge-offs for 2025 and 2024 are presented by origination year.
Loan Purchases The following table presents loan receivables purchased by portfolio segment, excluding loans acquired in business combinations:
The Company purchased the above loan receivables at a premium of $182 thousand and $1.8 million for 2025 and 2024, respectively. For the purchased loan receivables disclosed above, the Company did not incur any specific allowances for credit losses during the periods indicated.
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PREMISES AND EQUIPMENT |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT The following table presents the Company’s premises and equipment at cost and accumulated depreciation as of the following dates:
During 2025 and 2024, depreciation expense was $10.6 million and $9.4 million, respectively, and is included within occupancy and equipment expense in noninterest expense on the consolidated income statement
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BANK OWNED LIFE INSURANCE |
12 Months Ended |
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Dec. 31, 2025 | |
| Bank Owned Life Insurance [Abstract] | |
| BANK OWNED LIFE INSURANCE | BANK OWNED LIFE INSURANCE The Company has purchased life insurance policies on certain key officers and directors in connection with its supplemental executive retirement plans and other employee fringe benefit plans. Investments in BOLI policies totaled $170.3 million and $83.7 million as of December 31, 2025 and 2024, respectively. This carrying value includes both the Company’s original premiums invested in the life insurance policies and the accumulated accretion of policy income since the inception of the policies. Income from BOLI, which includes changes in cash surrender value of the policies and any gains resulting from the redemption of death benefits, is reported in noninterest income on the consolidated income statements. For 2025 and 2024, the Company recognized income from BOLI of $4.8 million and $2.6 million, respectively. The Company intends to hold these insurance policies for the remaining lives of the insureds and it expects to recover these values from the death benefits payable by the insurance companies that issued the policies.
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GOODWILL AND OTHER INTANGIBLES |
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Dec. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| GOODWILL AND OTHER INTANGIBLES | GOODWILL AND OTHER INTANGIBLES Goodwill represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of fair value of liabilities assumed. At December 31, 2025 and 2024, the Company had goodwill of $843.3 million from acquisitions prior to the merger with HomeStreet, Inc. As discussed in Note 2, “Business Combination,” a bargain purchase gain was recorded as a result of the Merger, therefore, no goodwill was recognized. The Company performed a qualitative impairment test as of November 30, 2025 and determined goodwill to have no impairment. Core deposit intangibles assets of $90.8 million were recognized as a result of the Merger. Core deposit intangible assets values were determined by an analysis of the cost differential between the core deposits inclusive of estimated servicing costs and alternative funding sources for core deposits acquired through business combinations. The core deposit intangible assets recorded are amortized on an accelerated basis over a period of 8 years, and the weighted average remaining amortization period for core deposit intangibles was approximately 8 years as of December 31, 2025. The Company evaluated the percentage change in core deposits from the respective acquisition date to December 31, 2025, versus the life to date amortization percentage of the core deposit intangible related to those core deposits. No impairment was recognized on core deposit intangibles for 2025 and 2024. Other intangibles acquired of $100.2 million related to a DUS license and business line was recognized related to the Merger. On December 3, 2025, the Company entered into an agreement to sell the DUS business line. See Note 1, “Summary of Significant Accounting Policies,” and Note 2, “Business Combination” for further details on the agreement and the valuation of the DUS license and business line. Trade name intangibles and DUS license and business line intangibles have an indefinite life and are not amortized. No impairment was recognized on the trade name intangible for 2025 and 2024 or the DUS license and business line intangible for 2025. The following table presents a summary of other intangible assets as of the periods indicated:
Amortization of intangible assets was $17.1 million and $13.4 million for 2025 and 2024, respectively. The following table presents estimated future amortization expense as of December 31, 2025:
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LEASES |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| LEASES | LEASES The Company leases certain premises. The Company has entered into various operating leases for its branches and operating facilities. These operating leases expire at dates through 2035 and generally contain renewal options for periods of 5 years to 10 years. These leases include provisions for periodic rent increases as well as payment by the lessee of certain operating expenses. The Company includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Company will exercise the option. In addition, the Company has elected to account for any non-lease component in its real estate leases as part of the associated lease components. Leases are classified as operating leases at lease commencement date. Lease expense for operating leases and short-term leases is recognized over a straight-line basis over the lease term. Operating lease expense, which represents the only component of lease cost, and is included in occupancy expense in the consolidated income statements, was $19.5 million and $15.0 million for 2025 and 2024, respectively. Right-of-use assets represent the right to use the underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Right of use assets and lease obligations are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The Company’s incremental borrowing rate is based on the FHLB advance rate, adjusted for the lease term and other factors. Supplemental cash flow and other information related to leases was as follows:
At December 31, 2025, the approximate minimum future lease payments under non-cancellable operating lease agreements were:
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LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS |
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Dec. 31, 2025 | |||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
| LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS | LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS The Company has LIHTC investments that are designed to promote qualified affordable housing programs and generate a return primarily through the realization of federal tax credits. The Company accounts for these investments by amortizing the cost of tax credit investments over the life of the investment using the proportional amortization method. Under the proportional amortization method, the amortization is recorded as a component of income tax expense. At December 31, 2025 and 2024, the balance of LIHTC investments, which is included in interest receivable and other assets on the consolidated balance sheets, was $43.3 million and $14.6 million, respectively. Remaining unfunded commitments related to the investments in qualified affordable housing projects totaled $7.9 million and $1.1 million as of December 31, 2025 and 2024. The Company expects to fulfill these commitments through 2039. The following table presents other information related to the Company’s LIHTC investments for the periods indicated:
The Company also has a portfolio of CRA investments. The majority of the CRA investments represent investments in small to mid-sized businesses throughout California. At December 31, 2025 and 2024, the balance of CRA investments, which is included in on the consolidated balance sheets, was $79.1 million and $55.9 million, respectively. The Company recognized dividend income on CRA investments of $4.0 million and $2.8 million for 2025 and 2024, respectively, which is included within other interest income in the consolidated income statements.
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DEPOSITS |
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Dec. 31, 2025 | |||||||||||||||||||||
| Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |||||||||||||||||||||
| DEPOSITS | DEPOSITS The aggregate amount of time certificates of deposits that meet or exceed the FDIC insurance limit of $250 thousand at December 31, 2025 and 2024 was $565.6 million and $407.7 million, respectively. At December 31, 2025, certificates of deposit outstanding mature as follows:
The Company accepts public deposits from various state, city and municipal agencies. Public deposits totaling $1.3 billion and $1.2 billion are included in demand deposits, interest bearing transaction accounts, savings accounts and time certificates of deposit at December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company had investment securities with a carrying value of $1.6 billion pledged as collateral for public deposits. The Company accepts deposits from its Investment Management and Trust Department for the benefit of certain trust customers. In accordance with state trust regulations, the Company is required to secure any trust deposits that are in excess of the $250 thousand FDIC insurance limits by pledging marketable securities equal to those excess deposit balances. As of December 31, 2025 and 2024, the Company held trust deposits of $683 thousand and $884 thousand, respectively, that were in excess of $250 thousand and which required securities collateralization.
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BORROWINGS AND LONG-TERM DEBT |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BORROWINGS AND LONG-TERM DEBT | BORROWINGS AND LONG-TERM DEBT Federal Home Loan Bank (FHLB) Advances The Company did not have any outstanding FHLB advances as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, the Company’s investment in capital stock of the FHLB totaled $17.3 million. The Company had $10.5 billion of loans pledged to the FHLB, which permits up to $6.2 billion of available borrowing capacity as of December 31, 2025. Federal Reserve Bank Discount Window The Company had no outstanding Discount Window borrowings as of December 31, 2025 and 2024. The Company had pledged $1.3 billion of consumer loans through the Borrower-In-Custody Program and investment securities with a carrying value of $3.4 billion to the Federal Reserve Bank Discount Window, which permits $4.4 billion of additional borrowing capacity as of December 31, 2025. Brokered and Other Wholesale Funding The Company had no brokered or other wholesale funding outstanding as of December 31, 2025 and 2024. The Company had $5.3 billion of available borrowing capacity under borrowing lines established with other financial institutions as of December 31, 2025. Long-Term Debt As a result of the Merger, the Company assumed Subordinated Notes, Senior Notes and TRUPS debt. These balances are reported beginning on the Merger date of September 2, 2025, therefore there are no balances or activity for 2024 and as of December 31, 2024. The trust preferred securities were issued by legacy HomeStreet, Inc. during the period from 2005 through 2007. In connection with the issuance of trust preferred securities, legacy HomeStreet, Inc. issued to HomeStreet Statutory Trust, Junior Subordinated Deferrable Interest Debentures. The sole assets of the HomeStreet Statutory Trust are the Subordinated Debt Securities I, II, III, and IV. The Company’s outstanding long-term debt as of December 31, 2025 is as follows:
(1)Includes discounts from purchase accounting adjustments as a result of the Merger on September 2, 2025. (2)On March 1, 2026, the Company redeemed at par, its $65 million of Senior Notes, see Note 27, “Subsequent Events.” (3)The Subordinated Notes bear interest at a rate of 3.5% per annum until January 30, 2027. From January 30, 2027, until the maturity date or the date of earlier redemption, the notes will bear interest equal to the three-month Term SOFR plus 215 basis points. (4)These rates reflect the floating rates as of December 31, 2025. (5)Call options are exercisable at par and are callable, without penalty, on a quarterly basis.
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DERIVATIVES AND HEDGING ACTIVITIES |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES To reduce the risk of significant interest rate fluctuations on the value of certain assets and liabilities, such as single family mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. As a part of its mortgage origination process, the Company enters into contracts that qualify as derivatives, including forward sale commitments and interest rate lock commitments. It is the Company’s practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into to economically hedge the effect of changes in the interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The Company enters into interest rate swaps with loan customers. The specific terms of the interest rate swap agreements are tied to the terms of the underlying loan agreements. To avoid increasing internal interest rate risk as a result of these business activities, the Company enters into offsetting swap agreements. The Company enters into interest rate swaps executed with commercial banking customers and broker dealer counterparties. The Company’s customer-related interest rate swaps provide an economic hedge but do not qualify for hedge accounting treatment. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Cooperative Rabobank, U.A. and a subsidiary of Rabobank International Holding B.V.’s parent also provided various interest rate swap services to the Company. The applicable Rabobank International Holding B.V. counterparties deposited $3.7 million in cash collateral with the Company to secure underlying derivative contracts as of December 31, 2025. B&F Capital Markets, LLC (a Stifel Company) has provided interest rate swap services to the Company since 2023. The following table presents the notional amounts and fair values for derivatives which are economic hedges. The fair values for derivatives are included in interest receivable and other assets or interest payable and other liabilities on the consolidated balance sheets.
(1)Includes net cash collateral received of $5.5 million and zero at December 31, 2025 and 2024, respectively. The collateral used under the Company’s master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties are included in interest receivable and other assets. Payables related to cash collateral that has been received from counterparties are included in interest payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At December 31, 2025 and 2024, the Company had liabilities of $5.6 million and zero, respectively, in cash collateral received from counterparties and receivables of $122 thousand and zero, respectively, in cash collateral paid to counterparties. The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:
(1)Comprised of forward contracts used as an economic hedge of loans held for sale and IRLCs to customers. Included in other noninterest income in the consolidated income statements. (2)Comprised of futures, U.S. Treasury options and forward contracts used as economic hedges of single family MSRs. (3)Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties. The interest income from U.S. Treasury notes trading securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $658 thousand and zero for 2025 and 2024, respectively.
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MORTGAGE BANKING OPERATIONS |
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| Mortgage Banking [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS LHFS consisted of the following:
Loans sold consisted of the following for the periods indicated:
For 2025 and 2024, there were no loans sold as part of securitizations. Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following:
(1)Gain on loan origination and sale activities is included in other noninterest income in the consolidated income statements. The Company’s portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae and Freddie Mac. The unpaid principal balance of loans serviced for others is as follows:
The following is a summary of changes in the Company’s liability for estimated single-family mortgage repurchase losses:
(1)Represents the reserve liability acquired from the Merger on September 2, 2025. (2)Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (3)Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expenses. The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $1.2 million were recorded in interest receivable and other assets as of December 31, 2025. There were no advances as of December 31, 2024. When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans within assets as interest receivable and other assets and within liabilities as interest payable and other liabilities. At December 31, 2025, there were no delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets and there were no such delinquent or defaulted mortgage loans as of December 31, 2024. Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
(1)Represents changes due to collection/realization of expected cash flows and curtailments. (2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. (3)Comprised of net gains on derivatives used as economic hedges of single family MSRs, and net gains on U.S. Treasury notes trading securities used for hedging purposes. Single Family MSRs Balances and activity for single family MSRs are reported beginning on the Merger date of September 2, 2025, therefore there were no balances or activity for 2024 and as of December 31, 2024. The changes in single family MSRs measured at fair value are as follows:
(1)Represents MSRs acquired from the Merger on September 2, 2025. (2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates (3)Represents changes due to collection/realization of expected cash flows and curtailments. Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows:
(1)Based on a weighted average. (2)Represents an expected lifetime average CPR used in the model. For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:
(1) Weighted averages of all the inputs within the range. (2) Represents the expected lifetime average CPR used in the model. To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:
Multifamily and SBA MSRs Balances and activity for multifamily and SBA MSRs are reported beginning on the Merger date of September 2, 2025, therefore there were no balances or activity for 2024 and as of December 31, 2024. The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows:
(1)Represents MSRs acquired from the Merger on September 2, 2025. The fair value of multifamily and SBA MSRs was $28.3 million at December 31, 2025. Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
(1)Based on a weighted average. For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below. Multifamily DUS loans typically contain yield maintenance features that significantly reduce loan prepayments, resulting in a CPR of zero for valuation purposes.
(1) Weighted averages of all the inputs within the range. At December 31, 2025, the expected weighted-average life of the Company’s multifamily and SBA MSRs was 11 years. Projected amortization expense for the gross carrying value of multifamily and SBA MSRs is estimated as follows:
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GUARANTEES AND MORTGAGE REPURCHASE LIABILITY |
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Dec. 31, 2025 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| GUARANTEES AND MORTGAGE REPURCHASE LIABILITY | GUARANTEES AND MORTGAGE REPURCHASE LIABILITY In the ordinary course of business, the Company sells loans through the Fannie Mae Multifamily Delegated Underwriting and Servicing Program (DUS®) that are subject to a credit loss sharing arrangement. The Company services the loans for Fannie Mae and shares in the risk of loss with Fannie Mae under the terms of the DUS contracts. Under the DUS program, the Company and Fannie Mae share losses on a pro rata basis, where the Company is responsible for losses incurred up to one-third of the principal balance on each loan with two-thirds of the loss covered by Fannie Mae. For loans that have been sold through this program, a liability is recorded for this loss sharing arrangement under the accounting guidance for guarantees. At December 31, 2025, the total unpaid principal balance of loans sold under this program was $1.8 billion and the Company’s reserve liability related to this arrangement totaled $554 thousand. There was a reversal of provision of $341 thousand and no actual losses were incurred for 2025. Balances and activity from the DUS Program are reported beginning on the Merger date of September 2, 2025. Therefore there were no balances or activity for 2024 and as of December 31, 2024. On December 3, 2025, the Company entered into an agreement to sell the DUS business line. See Note 1, “Summary of Significant Accounting Policies” for further details. In the ordinary course of business, the Company sells residential mortgage loans to government sponsored enterprises and other entities. Under the terms of these sales agreements, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $4.4 billion as of December 31, 2025. At December 31, 2025, the Company had recorded a mortgage repurchase liability for loans sold on a servicing-retained and servicing-released basis, which is included in accounts payable and other liabilities on the consolidated balance sheets of $708 thousand. There was a provision of $3 thousand and $29 thousand actual losses were incurred for 2025. Balances from loans sold on a servicing retained basis and the mortgage repurchase liability are reported beginning on the Merger date of September 2, 2025. Therefore there were no balances as of December 31, 2024.
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COMMITMENTS AND CONTINGENCIES |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments In the ordinary course of business, the Company extends secured and unsecured open-end loans to meet the financing needs of its customers. In addition, the Company makes certain unfunded loan commitments as part of its lending activities that have not been recognized in the Company’s financial statements. These include commitments to extend credit made as part of the Company’s lending activities on loans the Company intends to hold in its LHFI portfolio. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements. The Company’s exposure to credit loss is the contract amount of the commitment in the event of nonperformance by the borrower. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments and evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, is based on management’s credit evaluation of the borrower. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and real property. The Bank also issues standby letters of credit, which are unconditional commitments to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support construction, bonds, private borrowing arrangements, and similar transactions. These commitments generally do not exceed three years. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds collateral as deemed necessary, as described above. These commitments include the following:
(1)Within the commercial portfolio lines, undistributed construction loan proceeds, where the Company has an obligation to advance funds for construction progress payments were $361.4 million and $129.9 million at December 31, 2025 and 2024, respectively. The total amounts of unused commitments do not necessarily represent future credit exposure or cash requirements in that commitments may expire without being drawn upon. Legal Contingencies In the normal course of business, the Company may have various legal claims and other similar contingent matters outstanding for which a loss may be realized. For these claims, the Company establishes a liability for contingent losses when it is probable that a loss has been incurred and the amount of loss can be reasonably estimated. For claims determined to be reasonably possible but not probable of resulting in a loss, there may be a range of possible losses in excess of the established liability. As of December 31, 2025 and 2024, the Company recorded an accrued contingent liability of $4.2 million and $3.1 million, respectively. McClain Feed Yard Litigation. Mechanics Bank is currently a defendant in (i) actions filed in the U.S. Bankruptcy Court for the Northern District of Texas, captioned AgTexas Farm Credit Services, et al. v. Rabo AgriFinance, LLC, et al. and 2B Farms, et al. v. Rabo AgriFinance, LLC, et al., which were consolidated in the bankruptcy case captioned In re McClain Feed Yard, Inc., et al. (jointly administered with In re 2B Farms), (ii) a related adversary proceeding filed by a court- appointed Chapter 7 Trustee captioned Kent Ries, et al. v. Community Financial Services Bank et al. (In re McClain Feed Yard, Inc.), and (iii) a Kentucky putative class action captioned Tindal and Rogers v. Community Financial Services Bank, et al., brought on behalf of investors in that state. These cases allege that the defendants knowingly or negligently aided and abetted a Ponzi scheme orchestrated by Kentucky farmer Brian McClain, who was accused of defrauding investors of millions of dollars through a fictitious “ghost” cattle scheme. As discussed in Item 1A. “Risk Factors,” we analyze loss contingencies in accordance with the guidance provided in ASC 450, “Contingencies.” Although we do not consider the potential for an insurance recovery in making the determination of the reasonably estimable amount of loss (as discussed in Item 1A. “Risk Factors,”), we do maintain insurance, with significant policy limits, that could provide coverage for the liabilities that may arise from this matter. Additionally, we believe that Rabo AgriFinance LLC and certain third parties are contractually obligated to indemnify us in these cases. We intend to vigorously defend these cases and pursue our indemnification rights. However, based on the information currently available and uncertainty around these pending unresolved issues, we cannot reasonably estimate a range of potential exposures at this time. Therefore, we have not recorded an accrual for these cases under ASC 450-20. However, it is reasonably possible that the ultimate resolution of these cases could result in future charges that may be material in our results of operation. We will continue to monitor and evaluate the status of these cases each quarter to determine the need for additional disclosure pursuant to ASC 450.
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FAIR VALUE MEASUREMENTS |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The term “fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Fair Value Hierarchy A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows: •Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. •Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument. •Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company’s assumptions of what market participants would use in pricing the asset or liability. The Company’s policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company’s assets and liabilities valued at fair value on a recurring basis.
The following tables present the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis:
There were no transfers between levels of the fair value hierarchy for 2025 and 2024. Level 3 Recurring Fair Value Measurements The Company’s Level 3 recurring fair value measurements consist of investment securities AFS, single family MSRs, and interest rate lock commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during 2025, see Note 13, “Mortgage Banking Operations.” The fair value of IRLCs considers several factors, including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value of IRLCs on LHFS, while based on interest rates observable in the market, is highly dependent on the ultimate closing of the loans. The significance of the fall-out factor to the fair value measurement of an individual IRLC is generally highest at the time that the rate lock is initiated and declines as closing procedures are performed and the underlying loan gets closer to funding. The fall-out factor applied is based on historical experience. The value of servicing is impacted by a variety of factors, including prepayment assumptions, discount rates, delinquency rates, contractually specified servicing fees, servicing costs and underlying portfolio characteristics. Because these inputs are not observable in market trades, the fall-out factor and value of servicing are considered to be Level 3 inputs. The fair value of IRLCs decreases in value upon an increase in the fall-out factor and increases in value upon an increase in the value of servicing. Changes in the fall-out factor and value of servicing do not increase or decrease based on movements in other significant unobservable inputs. The Company recognizes unrealized gains and losses from the time that an IRLC is initiated until the gain or loss is realized at the time the loan closes, which generally occurs within 30-90 days. For IRLCs that fall out, any unrealized gain or loss is reversed, which generally occurs at the end of the commitment period. The gains and losses recognized on IRLC derivatives generally correlates to volume of single family interest rate lock commitments made during the reporting period (after adjusting for estimated fallout) while the amount of unrealized gains and losses realized at settlement generally correlates to the volume of single family closed loans during the reporting period. The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets as of December 31, 2025. As of December 31, 2024, there were no assets measured at fair value using Level 3 unobservable inputs.
The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated:
(1)Includes the assets acquired from the Merger on September 2, 2025 The following table presents fair value changes and activity for Level 3 interest rate lock commitments:
(1)Represents the interest rate lock commitments acquired from the Merger on September 2, 2025. Assets and Liabilities Measured on a Nonrecurring Basis Collateral Dependent Loan Receivables: The fair value of collateral dependent loan receivables with specific allocations of the allowance for credit losses based on collateral values is generally based on recent appraisals or evaluations. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. Loss exposure for collateral dependent loans is typically determined by the “practical expedient” which allows these loans to be assessed using the fair value of collateral method, which compares the net realizable value of the collateral (fair value less costs of sale) to the amortized cost basis of the loan (carrying value). The following tables present collateral dependent loans that were measured at fair value on a nonrecurring basis, and still held on the consolidated balance sheets, as well as the valuation methodology and unobservable inputs, and the losses resulting from those fair value adjustments for the periods indicated.
(1)The losses represent re-measurements of collateral-dependent impaired loans with specific allowance for credit loss allocations. As of December 31, 2024, there were no collateral dependent loans with specific allowance for credit loss allocations, which are measured for impairment using the fair value of collateral. Other real estate owned: Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned are measured at the lower of the carrying amount or fair value, less costs to sell. Fair values are generally based on third party appraisals of the property or internal evaluations based on comparable sales, resulting in a Level 3 classification. Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. In cases where the carrying amount exceeds the fair value, less cost to sell, an impairment loss is recognized. Management also considers inputs regarding market trends or other relevant factors and selling and commission costs. Other real estate owned assets fall under a Level 3 fair value measurement methodology. The following tables present other real estate owned that were measured at fair value on a nonrecurring basis and still held on the consolidated balance sheets, as well as the valuation methodology, unobservable inputs and losses resulting from those fair value adjustments for the periods indicated. Other real estate owned of $1.7 million as of December 31, 2025 was acquired in the Merger and recorded at fair value as of the Merger date.
(1)Losses are included in other real estate owned related expense within noninterest expense on the consolidated income statements. The following is a summary of the estimated fair value and carrying value of the Company’s financial instruments not recorded at fair value in the consolidated financial statements as of December 31, 2025 and 2024:
Fair Value Option Single family loans held for sale accounted under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within other noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluation adjustments to the recorded fair value. The use of the fair value option allows the change in the fair value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale. The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option as of December 31, 2025. As of December 31, 2024, there were no single family loans held for sale accounted for under the fair value option, since this election was made following the Merger.
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INCOME TAXES |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INCOME TAXES | INCOME TAXES For the years ended December 31, 2025 and 2024, domestic pre-tax income was $319.6 million and $35.7 million, respectively. The Company does not have income or income taxes related to foreign operations. Income taxes are summarized as follows:
The provision for income taxes for 2025 and 2024 differs from the amounts that would be computed by applying the statutory federal income tax rate of 21.0%. The Company’s income tax expense, statutory federal income tax rate and effective tax rate are reconciled as follows:
(1)State taxes in California make up the majority (greater than 50%) of the tax effect in this category. The effective tax rates differ from the federal statutory tax rate as a result of state taxes for which the Company is liable, as well as permanent differences between amounts reported for financial statement purposes and taxable income. Temporary differences between the amounts reported in the financial statements and tax bases of assets and liabilities result in deferred taxes. The net deferred taxes are reported in interest receivable and other assets in the consolidated balance sheets as of December 31, 2025 and 2024. Deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:
The Company’s effective income tax rates (income tax expense as a percentage of income before income taxes) were 16.8% and 18.8% for the years ended December 31, 2025 and 2024 respectively. The effective income tax rates differ from federal statutory rate as result of state income taxes for which the Company is liable, as well as permanent differences between amounts reported for financial statement purposes and amount reported for income tax purposes, including the recognition of excess tax benefits or deficiencies associated with share-based payment transactions through income tax expense. The effective income tax rates also reflect the impact on pretax earnings from the recognition of a bargain purchase gain in 2025 recorded in connection with the HomeStreet acquisition and realized losses from securities in an unrealized loss position in connection with the Company’s portfolio rebalancing. In addition, the effective income tax rate for 2024 reflects tax credits claimed in current and prior years. The Company recorded no material unrecognized tax benefits for 2025 and 2024. Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to permit use of the existing deferred tax assets. In connection with the Merger, the Company acquired federal and state net operating losses and tax credit carryforwards. At December 31, 2025, the Company had available net operating loss carryforwards for income tax purposes totaling $184.3 million, consisting of federal and state losses of $117.7 million and $66.6 million respectively. Of the aggregate net operating losses, $120.2 million has an indefinite expiration and $64.1 million will begin to expire in various years starting in 2035. In addition, the Company has various tax credit carryforwards in the amount of $8.4 million. The credits begin to expire in 2043. Utilization of the net operating loss and tax credit carryforwards is subject to annual limitations due to the change in ownership provisions of the Internal Revenue Code of 1986, as amended. The Company believes that it is more likely than not that all of the acquired credits and a portion of the acquired net operating losses will not be utilized within the statutory carryforward periods and recorded a valuation allowance through purchase accounting. The Company recorded a valuation allowance as of December 31, 2023, against certain capital loss carryforwards. The capital losses were fully utilized against capital gains and the valuation allowance was released in the year ended December 31, 2024. The Company and its subsidiaries are subject to U.S. federal income tax as well as income in various state jurisdictions. The primary non-federal jurisdiction is California. The Company’s federal tax returns are open and subject to examination from the 2022 tax return year and forward. The years open to examination by state and local government authorities varies by jurisdiction. Income taxes paid, net of refunds, by jurisdiction for 2025 and 2024 are as follows:
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS All of the Company’s revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income in the consolidated income statements. A description of the Company’s revenue streams accounted for under ASC 606 are as follows: Service Charges on Deposit Accounts and Other Deposit Service Fees: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer’s account balance. Other deposit service fees are recognized at the point in time that the transaction occurs or the services provided. Trust Fees: The Company earns trust fees from its contracts with trust customers to manage assets for investment services. These fees are primarily earned over time as the Company provides the contracted monthly services and are generally assessed based on a tiered scale of the market value of assets under management at month-end. Other related services provided, which are based on a fixed fee schedule, are recognized when the services are rendered. Merchant Processing Services, ATM processing and Debit Card Fees: ATM processing fees are recognized at the point in time that the transaction occurs or the services provided. The Company earns interchange fees from cardholder transactions conducted through the payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The following is a summary of the revenue from contracts with customers in the scope of ASC 606 that is recognized within noninterest income (loss):
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EARNINGS PER SHARE |
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EARNINGS PER SHARE | EARNINGS PER SHARE The Company has two classes of common stock and, as such applies the “two-class method” of computing earnings per share in accordance with ASC 260, “Earnings Per Share.” Earnings are allocated in the same manner as dividends would be distributed. The Company’s common shareholders are entitled to equally share in all dividends and distributions based on such shareholders’ pro rata ownership interest in the Company, except that each share of Class B common stock is 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. The following tables summarize the calculation of earnings per share under the two-class method:
(1)Periods prior to September 2, 2025 have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the Merger of 3,301.0920 for Class A common stock and 330.1092 for Class B common stock. (2)No restricted stock units were antidilutive for 2025 or 2024.
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SHARE-BASED COMPENSATION PLANS |
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SHARE-BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS The 2025 Equity Plan, adopted by shareholders in August 2025, provides for the issuance of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance awards, dividend equivalent awards and other awards. All share-based awards that are granted after the Merger date will be issued under the 2025 Equity Plan. As of December 31, 2025, only RSUs have been granted under the 2025 Equity Plan. Shares available for grant under the 2025 Equity Plan were 7,315,390 shares as of December 31, 2025. In connection with Mechanics Bank becoming a wholly-owned subsidiary of the Company, which is publicly traded, and the stock of Mechanics Bank being exchanged for shares of Class A common stock of the Company as a result of the Merger, the Company has elected to settle share-based compensation awards in Class A common stock of the Company that were outstanding following the Merger that historically were settled in cash by Mechanics Bank. Accordingly, during 2025, the Company modified the classification of these outstanding awards from liability to equity (RSU awards). These outstanding awards also were remeasured at the modification date fair value of the Company’s stock, and the previously recognized liability was reclassified to common stock within the consolidated balance sheets. Upon modification, $13.6 million of previously recognized liability-classified awards was reclassified to additional paid-in capital. Compensation expense on the accompanying consolidated income statements is $5.6 million and $4.6 million for 2025 and 2024, respectively. The income tax benefit recognized in the consolidated income statements related to this expense was $1.6 million and $1.3 million for 2025 and 2024, respectively. The amount of unrecognized compensation expense related to all RSUs as of December 31, 2025 totaled $8.3 million. Such expense is expected to be recognized over a weighted average period of 2.43 years. RSUs generally vest over a period of four years with the fair market value of the awards determined at the grant date based on the Company's stock price. The fair value of RSUs vested in 2025 and 2024 was $7.1 million and $144 thousand, respectively.
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RETIREMENT BENEFIT AND PROFIT SHARING PLANS |
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| Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| RETIREMENT BENEFIT AND PROFIT SHARING PLANS | RETIREMENT BENEFIT AND PROFIT SHARING PLANS The Company’s qualified retirement plan (“Retirement Plan”) is a noncontributory defined benefit retirement plan, which generally provides for the payment of a monthly pension to employee participants upon their reaching normal retirement at age 65. The Retirement Plan also allows for the payment of joint and survivor pension benefits and early retirement benefits at substantially reduced amounts. The pension benefit of the Retirement Plan vests after five years of accredited employee service. The pension benefit amount is determined according to a percentage formula, which considers an employee’s total number of years of accredited service at the time of their eventual retirement, and also the average annual compensation paid to the employee during a five-year period, as defined in the plan. This Retirement Plan has been established under a qualified pension trust. The Company uses a December 31 measurement date. The Company has also implemented non-qualified defined benefit retirement plans (“Supplemental Plans”) that supplements the benefits provided under the qualified Retirement Plan. The Supplemental Plans provide additional retirement and death benefits to a discrete group of key executive employees and their designated beneficiaries. The Supplemental Plans are an unfunded obligation of the Company. At the end of 2008, participation and benefits in both the Retirement Plan and the Supplemental Plans were frozen. All current and certain former employees who were participants in the Retirement Plan, who had at least one year of accredited service, and who had not yet vested in their benefits from the plan, became 100% vested at the end of 2008. All current participants of the Supplemental Plans employed by the Company at the end of 2008, who had at least one year of accredited service, and who had not yet vested in their benefits, also became 100% vested at the end of 2008. The Company terminated the Retirement Plan effective March 31, 2024. The Company evaluated alternatives to settle the outstanding obligations of the pension plan and final settlements occurred during fiscal year 2024. Participants were offered lump sum payments, annuities purchased on their behalf or a rollover to a qualified deferred retirement plan. The following tables reflect the funded status, net periodic benefit cost and other information about the Retirement Plan and the Supplemental Plans as of and for the years ended December 31, 2025 and 2024:
Subsequent to the Retirement Plan’s termination, in 2025, the Company made nonelective contributions to the Mechanics Bank Profit Sharing/401(k) Plan of $5.1 million. As of December 31, 2025, the estimated net loss that will be amortized from accumulated other comprehensive income (loss) on the consolidated balance sheets into net periodic benefit cost during the next fiscal year was zero for the Retirement Plan and estimated to be $688 thousand for the Supplemental Plans. As of December 31, 2025, there was zero deferred prior service cost to be amortized into net periodic benefit cost for either the Retirement Plan or the Supplemental Plans. The Company contributed $2.0 million and $2.4 million to the Supplemental Executive Retirement Plan during 2025 and 2024, respectively, to cover the benefit payments due in those years. Currently, the Company estimates the contribution amount for 2026 to cover expected annuity payments will be $2.0 million. Net periodic benefit cost for 2025 and 2024 was based on the Pri-2012 separate employee and retiree tables with contingent survivor adjustments for exiting survivors and white collar adjustments with projected future improvements using a modified version of scale MP-2021. Financial disclosures as of December 31, 2025 and 2024 are based on the Pri-2012 separate employee and retiree tables with contingent survivor adjustments for exiting survivors and white collar adjustments with projected future improvements using a modified version of scale MP-2021. The assets of the Retirement Plan are carried in a separate qualified pension trust which is not recorded in the consolidated balance sheets of the Company. For the year ended December 31, 2024, the long-term expected rate of return on Retirement Plan assets is estimated based on the expected future returns and historic returns that the Retirement Plan trust assets earned in the last twenty years. The following table summarizes the composition of the Retirement Plan trust assets as of December 31, 2025 and 2024:
Prior to the Retirement Plan’s termination, the investment policy of the Retirement Plan was to continuously allocate plan assets in a prudent, diversified and flexible manner among various asset classes to achieve an acceptable long-term total rate of return in line with broader financial market experience while taking into consideration return opportunities and potential risks presented by the overall economy and financial markets. The Retirement Plan assets reflected in the tables below are the fair values of the plan assets as of the respective reporting dates shown at December 31, 2025 and 2024. Fair value is generally the exchange price that would be received for an asset in the principal or most advantageous market for the asset in an orderly transaction between market participants on the measurement date. The fair value of all equity securities has been determined based upon quoted market prices at the close of market trading on nationally recognized securities exchanges (Level 1) on the report date. The fair value of all debt securities has been determined at the close of market trading on the report date, utilizing matrix pricing, which is a mathematical technique widely used in the financial industry to value debt securities without relying exclusively on quoted prices for specific securities (Level 2). The fair value of money market instruments and other assets was the cash value for the financial instruments or other accounts as of the close of the market on the report date (Level 1). The Retirement Plan did not hold any assets on the respective report dates that were not traded in established markets, requiring alternative fair value determinations utilizing significant unobservable inputs (Level 3). The fair value of the Retirement Plan assets at December 31, 2025 and 2024, by asset category, were as follows:
The following pension benefits and reserves for death benefits are expected to be paid in future years based upon the benefits and life insurance commitments of the Supplemental Plans as of December 31, 2025 and based on expected employment turnover and actuarially determined life expectancies of participants and beneficiaries:
Under the Mechanics Bank Profit Sharing/401(k) Plan (“Mechanics Bank 401(k) Plan”), all employees may make elective contributions. The Company may make profit sharing contributions or nonelective contributions to this plan at the discretion of the Board of Directors of the Company. In 2025, the Company made nonelective contributions to this plan of $5.1 million. In 2024, the Company provided a discretionary Company match of individual employee contributions up to 3.5% of an employee’s eligible compensation. Plan participants’ matching contributions from the Company vest after two years. After the closing of the Merger, the legacy HomeStreet’s 401(k) plan was maintained separately from the Mechanics Bank 401(k) Plan. The plan was frozen as of December 31, 2025, and will be merged into the Mechanics Bank 401(k) Plan in the first quarter of 2026. Expense related to the 401(k) employer contributions (including the legacy HomeStreet’s plan following the Merger) was $947 thousand and $3.9 million for 2025 and 2024, respectively. The expense for 2025 consisted of the employer contribution for legacy HomeStreet for the post-merger period. For legacy Mechanics Bank, no employer contribution was made in 2025 due to the nonelective contribution.
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SHAREHOLDERS' EQUITY AND DIVIDEND LIMITATIONS |
12 Months Ended |
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Dec. 31, 2025 | |
| Equity [Abstract] | |
| SHAREHOLDERS' EQUITY AND DIVIDEND LIMITATIONS | SHAREHOLDERS’ EQUITY AND DIVIDEND LIMITATIONS On September 2, 2025, HomeStreet Bank merged with and into Mechanics Bank, and Mechanics Bank became a wholly- owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.). In connection with the Merger, the Company amended its articles of incorporation to increase the number of authorized shares of Company common stock from 160,000,000 to 1,900,000,000 and Company preferred stock from 100,000 to 120,000 and authorize the issuance of two (2) classes of Company common stock, 1,897,500,000 shares of which are designated Class A common stock and 2,500,000 shares of which are designated Class B common stock. Legacy Mechanics Bank’s number of shares issued and outstanding have been retrospectively restated for periods prior to the Merger to reflect the equivalent number of shares issued in the Merger since the Merger was accounted for as a reverse acquisition. In all prior periods, the fixed exchange ratio of 3,301.0920 was applied to shares of outstanding Mechanics Bank voting common stock, which were converted to Class A common stock, and the fixed exchange ratio of 330.1092 was applied to shares of outstanding Mechanics Bank non-voting common stock, which were converted to Class B common stock. Class A common stock: Our voting common stock is listed on Nasdaq under the symbol “MCHB” and there were 220,190,561 shares outstanding at December 31, 2025, and 200,884,880 shares outstanding at December 31, 2024. Class B common stock: Our Class B common stock is not listed or traded on any national securities exchange or automated quotation system, and there currently is no established trading market for such stock. There were 1,114,448 shares outstanding at December 31, 2025 and 2024. Each holder of Class A common stock and Class B common stock is entitled to one vote per share of combined company common stock on matters submitted to the vote of holders of combined company common stock. The Class A common stock and Class B common stock vote together as a single class on all matters submitted to a vote of combined company shareholders, except as may otherwise be required by law or certain adverse amendments to the rights of Class B common stock. The Company’s common shareholders are entitled to equally share in all dividends and distributions based on such shareholders’ pro rata ownership interest in the Company, except that each share of Class B common stock is 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. Mechanics is a separate legal entity from Mechanics Bank, which is the primary source of funds available to Mechanics to service its debt, fund its operations, pay dividends to shareholders, repurchase shares and otherwise satisfy its obligations. The availability of dividends from Mechanics Bank is limited by various statutes and regulations, capital rules regarding requirements to maintain a “well capitalized” position at Mechanics Bank, as well as by our policy of retaining a significant portion of our earnings to support Mechanics Bank’s operations. Under California law, Mechanics Bank, or any majority owned subsidiary of Mechanics Bank, generally may not declare a cash dividend on its capital stock in an amount that exceeds the lesser of the retained earnings of Mechanics Bank or the net income of Mechanics Bank in the last three fiscal years, less the amount of any distributions made by Mechanics Bank or any majority owned subsidiary of Mechanics Bank to shareholders of Mechanics Bank, unless approved by the California Department of Financial Protection and Innovation.
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REGULATORY CAPITAL REQUIREMENTS |
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| Regulatory Capital Requirements under Banking Regulations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| REGULATORY CAPITAL REQUIREMENTS | REGULATORY CAPITAL REQUIREMENTS The Company and Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a material effect on the Company’s operations and financial statements. Under capital adequacy guidelines, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company and Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about risk components, asset risk weighting, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk- weighted assets (as defined), and of Tier 1 capital (as defined) to assets (as defined). In addition, the Company and the Bank are required to maintain a capital conservation buffer consisting of common equity Tier 1 capital above 2.5% of minimum risk based capital adequacy ratios to avoid restrictions on certain activities including payment of dividends, stock repurchases and discretionary bonuses to executive officers. Management believes, as of December 31, 2025, that the Company and the Bank met all capital adequacy requirements. The following tables present the regulatory capital amounts and ratios (inclusive of the capital 2.5% conservation buffer, where applicable) for Mechanics Bancorp and Mechanics Bank as of the dates indicated:
(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 December 31, 2024, regulatory capital ratios are only presented for Mechanics Bank.
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PARENT COMPANY FINANCIAL STATEMENTS |
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| Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS As discussed in Note 1, “Summary of Significant Accounting Policies,” on September 2, 2025, the Merger by and among Mechanics Bancorp (formerly known as HomeStreet, Inc.), HomeStreet Bank and Mechanics Bank was consummated. In connection with the Merger, 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, activity for Mechanics Bancorp are reported beginning on the Merger date and no balances or activity is presented for 2024 or as of December 31, 2024, in the tables below. The condensed parent company only financial information below should be read in conjunction with the consolidated financial statements and related notes. Condensed financial information for Mechanics Bancorp is as follows:
(1)Consists of Senior Notes, Subordinated Notes and TRUPS debt. For additional information on long-term debt, refer to Note 11, “Borrowings and Long-Term Debt.” (2)Includes $4.0 million of Subordinated Notes that is eliminated in consolidation, since Mechanics Bank owns $4.0 million of this debt security in its available-for-sale portfolio. On a consolidated basis, long-term debt for Mechanics Bancorp is $192.0 million.
(1)Represents activity following the Merger on September 2, 2025 through December 31, 2025.
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RELATED PARTY TRANSACTIONS |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Loans and Deposit Transactions The Bank, in the ordinary course of business, has deposit transactions with directors and executives. In addition, the Bank has made or acquired loans to directors and/or executives, their immediate family members, and companies in which they have an interest, in the ordinary course of its business as a bank. In management’s opinion, these loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to the Bank and do not involve more than the normal risk of collectibility or present other unfavorable features. At December 31, 2025 and 2024, respectively, there were approximately $263 thousand and $141 thousand in loans outstanding to directors, executives and their related interests. At December 31, 2025 and 2024, respectively, there were no unfunded commitments to directors, executives and their related interests. At December 31, 2025 and 2024, respectively, there were approximately $3.6 million and $3.4 million in deposit balances from directors and executives. Mechanics Bank Services Agreement The Bank is a party to a Bank Services Agreement (“Mechanics Bank Services Agreement”) with GJF Financial Management II, LLC (“GJF Management”), an affiliate of Gerald J. Ford, a former director and now director emeritus of the Bank. GJF Management serves as the management company to the Ford Financial Funds, which collectively beneficially own, directly or indirectly, approximately 77% of our voting common stock as of December 31, 2025. The Bank is the sole portfolio company of the Ford Financial Funds. Pursuant to the Mechanics Bank Services Agreement, GJF Management and individuals from GJF Management provide certain services to Mechanics Bank, including, among other things, executive oversight, accounting, tax, investment management, legal, regulatory, strategic planning, capital management, budgeting and other oversight. The services and value of services, inclusive of administrative costs, are evaluated annually to ensure compliance with applicable regulations. These services were provided to the Bank at a cost of $9.7 million and $10.0 million for 2025 and 2024. Either party may terminate this agreement upon thirty days’ prior notice to the other. We also agreed to indemnify and hold harmless GJF Management for its performance or provision of these services, except for gross negligence and willful misconduct. Further, Mr. Webb, Executive Chairman of Mechanics, and Mr. Johnson, our current President and Chief Executive Officer, are both employed by GJF Management. Additionally, Mr. Russell, a director of Mechanics and former interim Chief Executive Officer of the Bank, is employed by an affiliate of Mr. Ford.
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QUARTERLY FINANCIAL DATA (UNAUDITED) |
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| Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| QUARTERLY FINANCIAL DATA (UNAUDITED) | QUARTERLY FINANCIAL DATA (UNAUDITED) Impact of Adoption of ASU 2025-08 The following tables present summarized unaudited quarterly financial data for the consolidated balance sheet as of September 30, 2025, and consolidated income statements for the three and nine months ended September 30, 2025, based on the Company’s early adoption of ASU 2025-08, as described in Note 1, “Summary of Significant Accounting Policies.” This quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments necessary to state fairly the information for the interim periods presented, which the Company considers necessary for a fair presentation when read in conjunction with the consolidated financial statements and notes. The Company believes these comparisons of consolidated quarterly selected financial data are not necessarily indicative of future performance.
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SUBSEQUENT EVENTS |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The Company redeemed the 6.50% Senior Notes on March 1, 2026, with a redemption price of 100% which is equal to $65.0 million aggregate principal amount. The notes had a maturity date of June 1, 2026. On February 25, 2026, the Board authorized a cash dividend of $0.40 per Class A common share and $4.00 per Class B common share, payable on March 19, 2026, to shareholders of record as of the close of business on March 9, 2026.
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Insider Trading Arrangements |
3 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Insider Trading Policies and Procedures |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Insider Trading Policies and Procedures [Line Items] | |
| Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |
| Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] | Cybersecurity Risk Management and Strategy We recognize the importance of assessing, identifying, and managing material risks associated with cybersecurity threats, as such term is defined in Item 106(a) of Regulation S-K. These risks include, among other things, operational risks; intellectual property theft; data compromise, fraud; extortion; harm to employees or customers; violation of privacy or security laws and other litigation and legal risk; and reputational risks. We maintain an incident response plan to coordinate the activities we take to protect against, detect, respond to and remediate cybersecurity incidents, as such term is defined in Item 106(a) of Regulation S-K, as well as to comply with potentially applicable legal obligations and mitigate brand and reputational damage. We have implemented several cybersecurity processes, technologies, and controls to aid in our efforts to identify, assess, and manage material risks, as well as to test and improve our incident response plan. Our approach includes, among other things: •conducting regular network and endpoint monitoring, vulnerability assessments, and penetration testing to improve our information systems, as such term is defined in Item 106(a) of Regulation S-K; •running tabletop exercises to simulate a response to a cybersecurity incident and use the findings to improve our processes and technologies; •regular cybersecurity training programs for employees, management and directors; conducting annual customer data handling training for all our employees; •conducting annual cybersecurity management and incident training for employees involved in our systems and processes that handle sensitive data; •comparing our processes to standards set by the National Institute of Standards and Technology (“NIST”), International Organization for Standardization (“ISO”), and Center for Internet Security (“CIS”); •having an incident response process that helps us identify, protect, detect, respond, and recover when there is an actual or potential cybersecurity incident; •operating threat intelligence processes designed to model and research our adversaries; •closely monitoring emerging data protection laws and implementing changes to our processes designed to comply; •undertaking regular reviews of our consumer facing policies and statements related to cybersecurity; •proactively informing our customers of substantive changes related to customer data handling; •conducting regular phishing email simulations for all employees and all contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats; •through policy, practice and contract (as applicable) requiring employees, as well as third-parties who provide services on our behalf, to treat customer information and data with care; •maintaining a risk management program for suppliers, vendors, and other third parties, which includes conducting pre-engagement risk-based diligence, implementing contractual security and notification provisions, and ongoing monitoring as needed; and •carrying information security risk insurance that provides protection against the potential losses arising from a cybersecurity incident. These approaches vary in maturity across the business enterprise and we work to continually improve them. Our process for identifying and assessing material risks from cybersecurity threats is integrated into our broader overall risk assessment process, covering all Company risks, including periodic risk reporting, risk assessment activities, and escalation protocols aligned with our enterprise risk governance framework. As part of this process, appropriate disclosure personnel will collaborate with subject matter specialists, as necessary, to gather insights for identifying and assessing material cybersecurity threat risks, their severity, and potential mitigations, and we consider a range of factors that may be relevant to materiality, including the nature and scope of the incident or risk, potential operational disruption, customer impact, regulatory or legal exposure, financial loss, and reputational harm. As part of the above approach and processes, we regularly engage with assessors, consultants, auditors, and other third parties, to review our cybersecurity program to help identify areas for continued focus, improvement and/or compliance. We oversee cybersecurity risks associated with third-party service providers through risk-based vendor tiering, pre- engagement due diligence, review of independent assurance reports where appropriate, contractual security requirements (including incident notification provisions), and periodic reassessments for higher-risk vendors. We describe whether and how risks from identified cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected or are reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition, under the heading “Risks Related to Our Technology Infrastructure” included as part of our risk factor disclosures in Item 1A. of this Form 10-K. We do not currently believe that any current cybersecurity threats, including as a result of any previous cybersecurity incidents, have materially affected, or are reasonably likely to materially affect, Mechanics, including its business strategy, results of operations or financial condition.
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| Cybersecurity Risk Management Processes Integrated [Flag] | true |
| Cybersecurity Risk Management Processes Integrated [Text Block] | We maintain an incident response plan to coordinate the activities we take to protect against, detect, respond to and remediate cybersecurity incidents, as such term is defined in Item 106(a) of Regulation S-K, as well as to comply with potentially applicable legal obligations and mitigate brand and reputational damage. We have implemented several cybersecurity processes, technologies, and controls to aid in our efforts to identify, assess, and manage material risks, as well as to test and improve our incident response plan. Our approach includes, among other things: •conducting regular network and endpoint monitoring, vulnerability assessments, and penetration testing to improve our information systems, as such term is defined in Item 106(a) of Regulation S-K; •running tabletop exercises to simulate a response to a cybersecurity incident and use the findings to improve our processes and technologies; •regular cybersecurity training programs for employees, management and directors; conducting annual customer data handling training for all our employees; •conducting annual cybersecurity management and incident training for employees involved in our systems and processes that handle sensitive data; •comparing our processes to standards set by the National Institute of Standards and Technology (“NIST”), International Organization for Standardization (“ISO”), and Center for Internet Security (“CIS”); •having an incident response process that helps us identify, protect, detect, respond, and recover when there is an actual or potential cybersecurity incident; •operating threat intelligence processes designed to model and research our adversaries; •closely monitoring emerging data protection laws and implementing changes to our processes designed to comply; •undertaking regular reviews of our consumer facing policies and statements related to cybersecurity; •proactively informing our customers of substantive changes related to customer data handling; •conducting regular phishing email simulations for all employees and all contractors with access to corporate email systems to enhance awareness and responsiveness to such possible threats; •through policy, practice and contract (as applicable) requiring employees, as well as third-parties who provide services on our behalf, to treat customer information and data with care; •maintaining a risk management program for suppliers, vendors, and other third parties, which includes conducting pre-engagement risk-based diligence, implementing contractual security and notification provisions, and ongoing monitoring as needed; and •carrying information security risk insurance that provides protection against the potential losses arising from a cybersecurity incident.
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| Cybersecurity Risk Management Third Party Engaged [Flag] | true |
| Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true |
| Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false |
| Cybersecurity Risk Board of Directors Oversight [Text Block] | Governance Cybersecurity is an important part of our risk management processes and an area of increasing focus for our Board and management. Our Board Risk Committee (“BRC”) is responsible for the oversight of risks from cybersecurity threats. At least quarterly, the BRC receives an overview from management of our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre- determined risk-mitigation-related goals, our incident response plan, and cybersecurity threat risks or incidents and developments, as well as the steps management has taken to respond to such risks. In such sessions, the BRC generally receives materials including a cybersecurity scorecard and other materials indicating current and emerging cybersecurity threat risks, describing the Company’s ability to mitigate those risks, and discussing such matters with our Chief Information Security Officer, Chief Operating Officer and Chief Information Officer. Members of the BRC are also encouraged to engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs. Material cybersecurity threat risks may also be considered during separate Board meeting discussions. Lastly, management engages external cyber security experts, as needed, leveraging their expertise as part of our ongoing effort to evaluate and enhance our cybersecurity program. They help with cyber defense capabilities and transformation designed to mitigate associated threats, reduce risk, enhance our cybersecurity posture, and meet the Company's evolving needs. Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by our Chief Information Security Officer, Chief Information Officer, and our management technology steering committee. Such individuals have collectively over 30 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy, and implementing effective information and cybersecurity programs, as well as several relevant certifications, including Certified Information Security Manager, Cisco Certified Network Administrator- Security, CompTIA Secure Infrastructure Specialist, and many others. These members of management and the management technology steering committee are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan. If a cybersecurity incident is determined to be a material cybersecurity incident, our incident response plan and cybersecurity disclosure controls and procedures define the process to disclose such a material cybersecurity incident. These processes are designed to support timely evaluation, escalation, and, where required, public disclosure.
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| Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | Our Board Risk Committee (“BRC”) is responsible for the oversight of risks from cybersecurity threats. |
| Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | At least quarterly, the BRC receives an overview from management of our cybersecurity threat risk management and strategy processes covering topics such as data security posture, results from third-party assessments, progress towards pre- determined risk-mitigation-related goals, our incident response plan, and cybersecurity threat risks or incidents and developments, as well as the steps management has taken to respond to such risks. In such sessions, the BRC generally receives materials including a cybersecurity scorecard and other materials indicating current and emerging cybersecurity threat risks, describing the Company’s ability to mitigate those risks, and discussing such matters with our Chief Information Security Officer, Chief Operating Officer and Chief Information Officer. Members of the BRC are also encouraged to engage in ad hoc conversations with management on cybersecurity-related news events and discuss any updates to our cybersecurity risk management and strategy programs. Material cybersecurity threat risks may also be considered during separate Board meeting discussions. Lastly, management engages external cyber security experts, as needed, leveraging their expertise as part of our ongoing effort to evaluate and enhance our cybersecurity program. They help with cyber defense capabilities and transformation designed to mitigate associated threats, reduce risk, enhance our cybersecurity posture, and meet the Company's evolving needs.
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| Cybersecurity Risk Role of Management [Text Block] | These members of management and the management technology steering committee are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.
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| Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true |
| Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by our Chief Information Security Officer, Chief Information Officer, and our management technology steering committee. Such individuals have collectively over 30 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy, and implementing effective information and cybersecurity programs, as well as several relevant certifications, including Certified Information Security Manager, Cisco Certified Network Administrator- Security, CompTIA Secure Infrastructure Specialist, and many others. These members of management and the management technology steering committee are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan.
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| Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | Our cybersecurity risk management and strategy processes, which are discussed in greater detail above, are led by our Chief Information Security Officer, Chief Information Officer, and our management technology steering committee. Such individuals have collectively over 30 years of prior work experience in various roles involving managing information security, developing cybersecurity strategy, and implementing effective information and cybersecurity programs, as well as several relevant certifications, including Certified Information Security Manager, Cisco Certified Network Administrator- Security, CompTIA Secure Infrastructure Specialist, and many others.
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| Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] | These members of management and the management technology steering committee are informed about and monitor the prevention, mitigation, detection, and remediation of cybersecurity incidents through their management of, and participation in, the cybersecurity risk management and strategy processes described above, including the operation of our incident response plan. If a cybersecurity incident is determined to be a material cybersecurity incident, our incident response plan and cybersecurity disclosure controls and procedures define the process to disclose such a material cybersecurity incident. These processes are designed to support timely evaluation, escalation, and, where required, public disclosure.
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| Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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| Basis of Presentation | Basis of Presentation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Unless the context requires otherwise, all references to the Company include its wholly-owned subsidiaries. The accounting and reporting policies of the Company are based upon U.S. GAAP and conform to predominant practices within the financial services industry. The Merger is considered a reverse acquisition in accordance with ASC 805-40, “Business Combinations-Reverse Acquisitions.” Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp, formerly HomeStreet, Inc., is the legal acquirer. Mechanics Bancorp’s financial results for all periods ended prior to September 2, 2025 reflect legacy Mechanics Bank’s results only on a standalone basis. In addition, Mechanics Bancorp’s reported financial results for 2025 reflect legacy Mechanics Bank’s financial results only on a standalone basis until the closing of the Merger on September 2, 2025 and results of the combined company for September 2, 2025 through December 31, 2025. The number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics Bancorp 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. Refer to Note 2, “Business Combination,” for additional information on the transaction.
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| Reclassifications | Certain prior period amounts have been reclassified to conform to the current presentation. These reclassifications had no impact on the Company’s prior year net income or shareholders’ equity.
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| Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and disclosures provided, and actual results could differ. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for credit losses. Other significant estimates that may be subject to change include fair value determinations and disclosures, evaluation of goodwill and other intangible assets for impairment, and the realization of deferred tax assets. These estimates may be adjusted as more current information becomes available, and any adjustments may be significant.
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| Business Combinations | Business Combinations: Purchase accounting requires that the assets purchased, the liabilities assumed, and non- controlling interests all be reported on the acquirer’s financial statements at their fair value, with any excess of purchase consideration over the net assets being reported as goodwill. A bargain purchase gain is realized when the excess of the fair value of identifiable net assets acquired is greater than the consideration paid and it is recognized in earnings on the acquisition date.
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| Trading Securities | Trading Securities: Trading securities, consisting of U.S. Treasury notes, are carried at fair value and are used as economic hedges of our single family mortgage servicing rights. Net gain or loss on trading securities are included in loan servicing income in the consolidated income statements.
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| Allowances for Credit Losses on Loans Held for Investment | Allowances for Credit Losses on Loans Held for Investment: The Company accounts for its allowance for credit losses with an expected loss methodology that is referred to as the current expected credit loss methodology. The following discussion represents the allowance for credit losses under the CECL methodology. Credit quality within the loans held for investment portfolio is continuously monitored by management and is reflected within the allowance for credit losses for loans. The allowance for credit losses, or reserve, is an estimate of expected losses over the lifetime of a loan within the Company’s existing loans held for investment portfolio. The allowance for credit losses for loans held for investment is adjusted by a provision for (reversal of) credit losses, which is reported in earnings, and reduced by the charge-off of loan amounts, net of recoveries. The credit loss estimation process involves procedures to appropriately consider the unique characteristics of the Company’s loan portfolio segments, which are further disaggregated into loan classes, the level at which credit risk is monitored. The allowance for credit losses will primarily reflect estimated losses for pools of loans that share similar risk characteristics but will also consider individual loans that do not share risk characteristics with other loans. The allowance for credit losses for loans not evaluated for specific reserves is calculated primarily using statistical credit factors, including PD and LGD, to the amortized cost or unpaid principal balance of loan exposures based on the guidance in ASC 326 as amended by ASU 2025-08, “Financial instruments–Credit Losses (Topic 326): Purchased Loans,” over their contractual life, adjusted for prepayments. Third-party provided economic forecasts are applied over the period management believes it can estimate reasonable and supportable forecasts. Reasonable and supportable forecast periods and reversion assumptions are credit model specific. Prepayments are estimated by loan type using historical information and adjusted for current and future conditions. When computing allowance levels, credit loss assumptions are estimated primarily using third-party models that analyze loans according to credit trends and risk characteristics like delinquency status, risk rating and debt service ability, including current conditions and reasonable and supportable forecasts about the future. Determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. Future factors and forecasts may result in significant changes in the allowance and provision (reversal) for credit losses in those future periods. The Company utilizes a blend of economic forecast scenarios from Moody’s Analytics, specifically, the baseline, upside (“S1”), and downside (“S3”) scenarios, as key inputs in estimating our ACL. These scenarios are refreshed quarterly and provide forward-looking assumptions on key macroeconomic indicators such as Gross Domestic Product (“GDP”) growth, unemployment rates, commercial real estate conditions, interest rates and other market risk factors. Within this framework, our current expected credit loss models generate PD and LGD at the individual loan or pooled segment level. These components are modeled using borrower characteristics, loan terms, and scenario-specific economic conditions. The product of PD and LGD results in the expected credit loss for each instrument, which aggregates into the Bank’s total ACL. In addition to model-driven outputs, we incorporate qualitative adjustments where management determines other considerations may be warranted. These adjustments consider factors not fully captured in the models and are reassessed regularly to ensure reserves remain appropriate. Changes in the Company’s assumptions and economic forecasts could significantly affect its estimate of expected credit losses, which could potentially lead to significant changes in the estimate from one reporting period to the next. Collectively Evaluated Loans In estimating the allowance for credit losses for collectively evaluated loans, segments are derived based on loans pooled by product types and similar risk characteristics or areas of risk concentration. In determining the allowance for credit losses, the Company utilizes third-party models for loss forecasting for the majority of the Company’s portfolio. These models ensure that we employ methodologies and analytics for our credit loss estimations. Estimating the timing and amounts of future losses is subject to significant management judgment as these loss cash flows rely upon assumptions and estimates such as default rates, loss severities, collateral valuations, the amounts and timing of principal payments (including any expected prepayments) or other factors that are reflective of current or future expected conditions. These assumptions and estimates, in turn, depend on industry, borrower, and portfolio specific conditions or economic environments. Economic forecasts are a crucial component of our estimation process, applied over a period deemed reasonable and supportable by management. These forecasts, alongside internal and external data, credit model- specific reversion assumptions and management judgment, inform our credit loss assumptions. Model imprecision also exists in the allowance for credit losses estimation process due to the inherent time lag of available industry information and differences between expected and actual outcomes. The following models are utilized for the Company’s portfolios: Auto Loans. The Company uses models which incorporate macroeconomic forecasts and loan level models for estimating PD and prepayment. While the Company has access to national data, we use a custom model based on the Company’s internal historical data and apply them to a blend of forecasted scenarios. Based on the portfolio’s composition of loans and their respective credit characteristics (origination year, collateral type, and delinquencies) and economic variables (vehicle values, borrower income trends, and housing market conditions), a cash flow schedule of losses is produced providing the expected loss rate for the segment. Model outputs are back-tested on an ongoing basis to determine adequacy and accuracy on a quarterly basis. When multiple scenarios are considered, the results are weighted. Commercial Real Estate – Non-Owner Occupied CRE and Multifamily Loans. The Company uses models specific to non- owner occupied CRE and multifamily loans. The model addresses traditional commercial real estate products dependent on cash flow generated from rents. Based on property information (DSC, LTV, geography, and property type), loan risk characteristics (payment structure, maturity, and interest rate), and economic variables (rent, capitalization rates, vacancy rates and the CRE price index), the model generates a PD and LGD at the individual loan level over the life of the loan, producing an expected loss rate for each instrument across all future periods. Collectively, these form the overall loss rate for the portfolio segment. For each scenario, all future year losses for each instrument are calculated using adjusted PD and LGD. The sum of the discounted future losses is the allowance. When multiple scenarios are considered, the results are weighted. Single Family Residential and Home Equity Loans. The Company uses a specific model for the SFR and home equity portfolios. These portfolios represent traditional residential real estate products dependent on the borrower’s ability to service debt. Based on borrower ability to repay and underwriting metrics (FICO, LTV, loan type, geography, origination year, collateral type), the model generates loan level PD, prepayment, and LGD vectors which are then simulated through various scenario forecasts to calculate an allowance. Past due status post-origination is also a key input in the models. Current and future changes in economic conditions, including unemployment rates, home prices, index rates, and mortgage rates, are also considered. When multiple scenarios are considered, the results are weighted. Commercial & Industrial, Commercial Real Estate – Owner Occupied, and Consumer Loans. A loss rate model is utilized for the C&I, CRE Owner Occupied, and Consumer portfolios other than Auto Loans and Loans secured by the cash surrender value of life insurance. The CRE Owner Occupied segment uses the same model as the C&I portfolio because repayment is reliant upon cash flow from associated businesses operating at these properties. The C&I loss rate model considers loan age, credit spread at origination, loan size at origination, regulatory risk rating, loan type, industry sector and macroeconomic factors to determine loan level lifetime expected loss rates. When multiple scenarios are considered, the results are weighted. Qualitative Factors Management considers qualitative adjustments to reflect current conditions and reasonable and emerging supportable forecasts not already adequately reflected in quantitative expected loss rates, including but not limited to: Nature & Volume, Concentration, Control Environment, Loan Review, Management & Staffing, Regulatory, Legal & Tech Environment, Economic, and Collateral Values. In addition to these risk factors, two qualitative factors, Growth and Other Management Adjustment, were added after consideration of all relevant potential risk factors extrinsic to the quantitative expected losses. All of these estimates and assumptions require significant management judgment, and certain assumptions are highly subjective. Individually Evaluated Loans When a loan does not share similar risk characteristics with other assets, the loan’s expected credit loss is evaluated individually and no longer evaluated on a collective basis. The net realizable value of the loan is compared to the appropriate loan basis to determine any allowance for credit losses. The Company generally considers non-accrual loans to be collateral-dependent. The practical expedient to measure credit losses using the fair value of the collateral has been exercised. For collateral-dependent commercial real estate loans, the fair value of collateral is generally based on current appraisals less selling costs. For single-family residential loans that are collateral dependent, an assessment of value is made using the most recent appraisal or market sales information, less selling costs. Consumer loans are charged off when they reach 120 days delinquency as a general rule. There are limited cases where the loan is not charged off due to special circumstances and is subject to the collateral review process. Off-Balance Sheet Credit Exposures, Including Unfunded Loan Commitments Beyond an ACL to cover estimated expected credit losses in all outstanding loans, the Company provides for any binding commitments to cover estimated credit losses over the contractual period, including other off-balance sheet obligations such as letters of credit (standby), and unused commitments on lines of credits and loans. In order to calculate the allowance for credit losses on unfunded lending commitments for the collectively evaluated segments, usage rates are supported for the unfunded commitments and then multiplied against the qualitative factor adjusted expected credit loss rate of each pool. Changes in the reserve for unfunded commitments are reflected within interest payable and other liabilities on the consolidated balance sheets and provision (reversal of provision) for credit losses on unfunded lending commitments on the consolidated income statements. Purchased Credit Deteriorated (PCD) Loans: For purchased loans, the Company will consider internal loan grades, delinquency status, collateral value (if secured), vintage, financial asset type, effective interest rate, geographical location and other relevant factors in assessing whether purchased loans are PCD. Loans can be evaluated for PCD at either the individual asset level or collectively based on similar risk characteristics. Purchased loans that have experienced more than insignificant credit deterioration since origination are considered PCD loans. PCD loans are recorded at the amount paid. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses gross up becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium. The non-credit discount is accreted into interest income using the effective interest method over the remaining contractual life of the loan, adjusted for estimated prepayments. Subsequently, the allowance for credit losses is determined using the same methodology as other loans held for investment measured based on unpaid principal balance net of any amounts charged off or accounted under the cost recovery method. Subsequent changes to the allowance for credit losses are recorded through credit loss expense. Non-Purchased Credit Deteriorated (“Purchased Seasoned”) Loans: PSL are purchased loans that are either: (1) non- PCD loans that are obtained in a business combination, or (2) non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. PSL are recorded at the amount paid. The initial allowance for credit losses determined on a collective basis is allocated to individual loans. The sum of the loan’s purchase price and allowance for credit losses gross up becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium. The non-credit discount is accreted into interest income using the effective interest method over the remaining contractual life of the loan, adjusted for estimated prepayments. Subsequently, the allowance for credit losses is determined using the same methodology as other originated loans held for investment measured at amortized cost. Subsequent changes to the allowance for credit losses are recorded through credit loss expense.
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| Mortgage Servicing Rights | Mortgage Servicing Rights: MSRs are recognized as separate assets on our consolidated balance sheets when we retain the right to service loans that we have sold or purchase rights to service. We initially record all MSRs at fair value. For subsequent measurements, single family MSRs are accounted for at fair value, with changes in fair value recorded through current period earnings, while multifamily and SBA MSRs are accounted for at the lower of amortized cost or fair value. Subsequent fair value measurements of MSRs are determined by considering the present value of estimated future net servicing cash flows. Changes in the fair value of MSRs result from changes in (1) model inputs and assumptions and (2) modeled amortization, representing the collection and realization of expected cash flows and curtailments over time. The significant model inputs used to measure the fair value of MSRs include assumptions regarding market interest rates, projected prepayment speeds, discount rates, estimated costs of servicing and other income and additional expenses associated with the collection of delinquent loans. Multifamily and SBA MSRs are evaluated periodically for impairment based upon the fair value of the MSRs as compared to amortized cost. Impairment is determined by comparing the fair value of the portfolio based on predominant risk characteristic loan type, to amortized cost. Impairment is recognized to the extent that fair value is less than the capitalized amount of the portfolio. For single family MSRs, loan servicing income includes fees earned for servicing the loans and the changes in fair value over the reporting period of both our MSRs and the derivatives used to economically hedge our MSRs. For other MSRs, loan servicing income includes fees earned for servicing the loans less the amortization of the related MSRs and any impairment adjustments.
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| Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill arises from business combinations and is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually or more frequently if events and circumstances exist that indicate that an impairment test should be performed. The Company has selected November 30, as the date to perform the annual impairment test. Intangible assets with finite useful lives are amortized over their estimated useful lives to their estimated residual values. Amortized intangibles must be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset might not be recoverable. An impairment loss related to intangible assets with finite useful lives is recognized if the carrying amount of the intangible asset is not recoverable and its carrying amount exceeds its fair value. After the impairment loss is recognized, the adjusted carrying amount of the intangible asset shall be its new accounting basis. Other intangible assets primarily consist of core deposit intangible assets, trade name intangibles and a DUS license and business line intangible arising from whole bank and branch acquisitions. The core deposit intangibles are amortized on an accelerated method over their estimated useful lives, which range from 6 to 10 years and the trade name intangibles and DUS license and business line intangible are not amortized as they have indefinite lives.
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| Cash Flows | Cash Flows: Cash and cash equivalents include cash on hand, interest-bearing deposits with other financial institutions with original maturities under 90 days, and daily federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions and Federal Home Loan Bank advances.
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| Debt Securities | Debt Securities: Debt securities are classified at the time of purchase as available-for-sale or held-to-maturity. Debt securities classified as HTM are recorded at amortized cost when management has the intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when management intends that they might be sold before maturity. Securities classified as AFS are carried at fair value. Unrealized holding gains and losses, net of taxes, are reported in accumulated other comprehensive income or loss on the consolidated balance sheets. Accreted discounts and amortized premiums are included in interest income using the level yield method, and realized gains or losses from sales of securities are calculated using the specific identification method. Management measures expected credit losses in accordance with ASC 326, “Financial Instruments – Credit Losses,” on HTM debt securities on a collective basis by major security type. Accrued interest receivable on HTM debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Nearly all of the mortgage-backed residential securities held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. Management has determined there is a zero loss expectation for HTM debt securities given the nature of the portfolio. For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors in accordance with ASC 326. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through and allowance for credit losses is recognized in AOCI. Changes in the allowance for credit losses are recorded as a credit loss expense (or reversal). Losses are charged against the allowance when management believes in the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. Management’s evaluation of any potential credit losses on the current AFS debt security portfolio is deemed immaterial. The Company may periodically reassess the classification of certain investments to determine whether a reclassification should be contemplated. If a transfer is deemed appropriate, the transfer occurs at fair value. For securities reclassified from AFS to HTM, the related unrealized gain or loss included in other comprehensive income remains in other comprehensive income, to be amortized out of other comprehensive income with an offsetting entry to interest income as a yield adjustment through earnings over the remaining term of the securities. No gains or losses are recorded at the time of transfer.
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| Equity Securities | Equity Securities: Equity securities consist of mutual funds held in trusts associated with deferred compensation plans for former directors and executives. These mutual funds are recorded as equity securities at fair value and are included in interest receivable and other assets on the consolidated balance sheets. Gains and losses are included in noninterest expense.
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| Federal Home Loan Bank Stock | Federal Home Loan Bank Stock: The Company is a member of the Federal Home Loan Bank system. Member banks are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery of par value. Cash and stock dividends are reported as income when received.
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| Loans Held for Sale | Loans Held for Sale: Loans originated for sale in the secondary market or designated for whole loan sales are classified as LHFS. Management has elected the fair value option for all single family LHFS (originated with the intent to market for sale) and records these loans at fair value. Gains and losses from changes in fair value of LHFS and realized gains and losses from loan sales are recognized in net gain on mortgage loan origination and sale activities within other noninterest income. Direct loan origination costs and fees for single family loans originated as held for sale are recognized as noninterest expense. Multifamily and SBA LHFS are accounted for at the lower of amortized cost or fair value. LOCOM valuations are performed quarterly or at the time of transfer to or from LHFS. Gains and losses from LOCOM valuations and realized gains and losses from loan sales are recognized in net gain on mortgage loan origination and sale activities within other noninterest income. Direct loan origination costs and fees for multifamily and SBA loans classified as held for sale are deferred at origination and recognized in gain on sale in earnings at the time of sale.
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| Loan Receivables | Loan Receivables: Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are recorded at the principal balance outstanding, net of charge-offs, unamortized purchase premiums and discounts and unamortized deferred loan fees and costs. The deferred loan fees and costs, as well as purchase premiums and discounts, are recognized in interest income as an adjustment to yield over the term of loans using the effective interest method. Interest on loans is credited to interest income as earned based on the interest rate applied to principal amounts outstanding. Interest income is accrued on the unpaid principal balance and is discontinued when management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that full collection of principal or interest becomes doubtful, regardless of the length of past due status. Generally, loans are placed on nonaccrual status when their payments are past due for 90 days or more. When interest accruals are discontinued, all unpaid accrued interest is reversed against interest income. Interest received on such loans is accounted for on the cash- basis or cost-recovery method, until qualifying for return to accrual. A charge-off is generally recorded at 180 days past due if the unpaid principal balance exceeds the fair value of the collateral less costs to sell. Commercial and industrial loans and commercial real estate loans are subject to a detailed review when 90 days past due to determine accrual status, or when payment is uncertain and a specific consideration is made to put a loan on non-accrual status. Consumer loans, other than those secured by real estate, are typically charged off no later than 180 days past due. Loans are returned to accrual status when the borrower has demonstrated a satisfactory payment trend subject to management’s assessment of the borrower’s ability to repay the loan. Loans acquired in our acquisitions are initially measured and recorded at their fair value on the acquisition date. A component of the initial fair value measurement is an estimate of the credit losses over the life of the purchased loans. Purchased loans are also evaluated to determine if they have experienced a more-than-insignificant deterioration in credit quality since origination or issuance as of the acquisition date and are classified as either (i) loans purchased without evidence of deteriorated credit quality (“non-PCD loans”), or (ii) loans purchased that have experienced a more-than- insignificant deterioration in credit quality, referred to as PCD loans. Acquired non‑PCD loans are those loans for which there was no evidence of a more-than-insignificant credit deterioration at their acquisition date and it was probable that we would be able to collect all contractually required payments. Acquired non‑PCD loans, together with originated loans, are referred to as non‑PCD loans. Prior to the adoption of ASU 2025-08, non-PCD loans are recorded at fair value at the acquisition date, with the resulting credit and non-credit discount or premium being amortized or accreted into interest income using the interest method. Purchase discounts or premiums on acquired non‑PCD loans are recognized as an adjustment to interest income over the contractual life of such loans using the effective interest method or taken into income when the related loans are paid off or sold. Acquired financial assets with credit deterioration (PCD assets) are recorded at the purchase price plus the allowance for credit losses expected at the time of acquisition. Acquired PCD loans are initially recorded at fair value, with the resulting non-credit discount or premium being amortized or accreted into interest income using the interest method. The credit allowance is recognized through a gross-up that increases the amortized cost basis of the asset with no effect on net income. Subsequent to the acquisition date, the allowance for credit losses for both PCD and non-PCD loans is estimated using the same methodology to determine current expected credit losses that is applied to all other loans.
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| Classified Assets | Classified Assets: Federal regulations provide for the classification of loans and other assets, such as debt and equity securities considered to be of lesser quality, as “substandard,” “doubtful” or “loss.” An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions, and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such little value that their continuance as assets without the establishment of a specific loss reserve is not warranted. When an insured institution classifies problem assets as “loss,” it is required to charge off or provide a specific reserve for such amount. The Company’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by its primary regulator, which may require the establishment of additional general or specific loss allowances.
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| Modifications to Borrowers Experiencing Financial Difficulty | Modifications to Borrowers Experiencing Financial Difficulty: When a borrower experiences financial difficulty, the Company may provide a modification or restructure for the purpose of alleviating temporary impairments to the borrower’s financial condition or cash flows. These modified or restructured loans are classified as MBFDs. MBFDs may include other than insignificant delays in payment of amounts due, forgiveness of principal, extension of the terms of the loan, or a reduction in the interest rate on the loans. In certain instances, the Company may grant more than one type of modification. The granting of modifications for 2025 and 2024 did not have a material impact on the ACL.
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| Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities: In the ordinary course of business, the Company enters into derivative transactions to manage various risks and to accommodate the business requirements of its customers. The fair value of derivative instruments are recognized as either assets or liabilities on the consolidated balance sheets. All derivatives are evaluated at inception as to whether or not they are hedge accounting or non-hedge accounting activities. For derivative instruments designated as non-hedge accounting activities (also referred to as economic hedges), the change in fair value is recognized currently in earnings. Gains and losses on derivative contracts utilized for economically hedging the mortgage pipeline are recognized as part of the net gain on mortgage loan origination and sale activities within other noninterest income. Gains and losses on derivative contracts utilized for economically hedging our single family MSRs are recognized as part of loan servicing income within noninterest income. Derivative instruments expose the Company to credit risk in the event of nonperformance by counterparties. This risk consists primarily of the termination value of agreements where the Company is in a favorable position. The Company minimizes counterparty credit risk through credit approvals, limits, monitoring procedures, and obtaining collateral, as appropriate. The Company also executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. These interest rate swaps are economically hedged by simultaneously entering into an offsetting interest rate swap that the Company executes with a third party, such that the Company minimizes its net risk exposure.
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| Other Real Estate Owned | Other Real Estate Owned: Other real estate owned, which represents real estate acquired through foreclosure of real estate related loans, is initially recorded at fair value less estimated selling costs of the real estate. This valuation is based on current independent appraisals obtained at the time of acquisition, less costs to sell when acquired, thus establishing a new carrying value. Loan balances in excess of carrying value of the real estate acquired at the date of acquisition are charged to the allowance for credit losses. Any subsequent operating expenses or income of such properties as well as gains and losses on the sale of OREO are included in noninterest expense on the consolidated income statements.
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| Premises and Equipment | Premises and Equipment: Land is carried at cost. Buildings and equipment are stated at cost less accumulated depreciation. Estimated useful lives of buildings and equipment are from 10 to 30 years and from 3 to 10 years, respectively. Depreciation is computed generally on a straight-line basis. Leasehold improvements are amortized over the shorter of the original lease term or their economic useful lives. The Company periodically evaluates premises and equipment for impairment.
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| Leases | Leases: We determine if an arrangement is a lease at inception. Operating leases are included in lease right-of-use assets, and lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The lease liability is recognized at commencement date based on the present value of lease payments over the lease term. The right-of-use asset is based on the lease liability adjusted for the reclassification of certain balance sheet amounts such as prepaid rent, lease incentives and deferred rent. As the rate implicit in most of our leases are not readily determinable, we generally use our incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease contract at commencement date. We have lease agreements with lease and non-lease components, which are generally accounted for separately for real estate leases. Certain of our lease agreements include rental payments that adjust periodically based on changes in the Consumer Price Index. Subsequent increases in the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred. The ROU assets and lease liabilities are not re-measured as a result of changes in the CPI. Lease expense for operating leases is recognized on a straight-line basis over the lease term. We use the long-lived assets impairment accounting guidance to determine whether an ROU asset is impaired, and if impaired, the amount of loss to recognize. Long-lived assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These could include vacating the leased space, obsolescence, or physical damage to a facility. If an impairment loss is recognized for a ROU asset, the adjusted carrying amount of the ROU asset would be its new accounting basis. The remaining ROU asset (after the impairment write-down) is amortized on a straight-line basis over the remaining lease term.
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| Bank Owned Life Insurance | Bank Owned Life Insurance: The Company has purchased life insurance policies on certain key current and former executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement.
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| Low Income Housing Tax Credit and Community Reinvestment Act Investments | Low Income Housing Tax Credit and Community Reinvestment Act Investments: As part of the CRA portfolio, the Company invests in qualified affordable housing projects and LIHTC investments that are designed to promote qualified affordable housing programs and generate a return primarily through the realization of federal tax credits. These investments are accounted for using the proportional amortization method. The investment balances are included in interest receivable and other assets on the consolidated balance sheets.
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| Off-Balance Sheet Instruments | Off-Balance Sheet Instruments: In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to make loans and commercial letters of credit, and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded in the financial statements when they are funded.
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| Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: The Company reviews its long-lived assets for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell.
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| Share-Based Compensation | Share-Based Compensation: Stock-based compensation expense for all share-based awards granted is based on the grant date fair value estimated in accordance with the provisions of ASC 718, “Stock Compensation.” The Company recognizes these compensation costs for only those awards expected to vest over the service period of the award. Forfeitures are recognized when they occur. The 2025 Equity Plan, adopted by shareholders in August 2025, provides for the issuance of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance awards, dividend equivalent awards and other awards. All share-based awards that are granted after the Merger date will be issued under the 2025 Equity Plan. As of December 31, 2025, only RSUs have been granted under the 2025 Equity Plan. Total shares issuable under the 2025 Equity Plan are 7,315,390, excluding shares that may be delivered pursuant to outstanding awards under prior plans. Any share-based awards outstanding as of the Merger date are considered outstanding under prior plans of legacy HomeStreet, Inc. and legacy Mechanics Bank, as appliable. No additional awards may be made under the prior plans, but prior plans remain in effect as to outstanding awards. Outstanding awards under the prior plans continue to be subject to the terms and conditions of their respective plan. In connection with Mechanics Bank becoming a wholly-owned subsidiary of the Company, which is publicly traded, and the stock of Mechanics Bank being exchanged for shares of Class A common stock of the Company as a result of the Merger, the Company has elected to settle share-based compensation awards in Class A common stock of the Company that were outstanding following the Merger that historically were settled in cash by Mechanics Bank. Accordingly, during 2025, the Company modified the classification of these outstanding awards from liability to equity. These outstanding awards also were remeasured at the modification date fair value, and the previously recognized liability was reclassified to common stock within the consolidated balance sheets. Compensation cost for these remeasured awards will be recognized over the remaining applicable award vesting period.
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| Earnings per Share | Earnings per Share: The Company has two classes of common stock and, as such applies the “two-class method” of computing earnings per share in accordance with ASC 260, “Earnings Per Share.” Earnings are allocated in the same manner as dividends would be distributed. The Company’s common shareholders are entitled to equally share in all dividends and distributions based on such shareholders’ pro rata ownership interest in the Company, except that each share of Class B common stock is 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. Basic earnings per share excludes potential dilution from common equivalent shares, such as those associated with stock-based compensation awards, and is computed by dividing net income allocated to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as common equivalent shares associated with stock-based compensation awards, were exercised or converted into common stock that would then share in the net earnings of the Company. Potential dilution from common equivalent shares is determined using the treasury stock method, reflecting the potential settlement of stock-based compensation awards resulting in the issuance of additional shares of the Company’s common stock. Stock-based compensation awards that would have an anti- dilutive effect have been excluded from the determination of diluted earnings per share.
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| Loss Contingencies | Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of a loss is probable and an amount or range of loss can be reasonably estimated. The Company is occasionally named as a defendant in or threatened with claims and legal actions arising in the ordinary course of business. The outcomes of claims and legal actions brought against the Company are subject to many uncertainties. For claims and legal actions where it is not reasonably possible that a loss may be incurred, or where the Company is not currently able to estimate the reasonably possible loss or range of loss, the Company does not establish an accrual. Any potential recoveries from insurance are not considered when determining an accrual.
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| Income Taxes | Income Taxes: The Company’s accounting for income taxes is based on an asset and liability approach. The Company recognizes the amount of taxes payable or refundable for the current year, and recognizes deferred tax assets and liabilities for the future tax consequences for transactions that have been recognized in the Company’s consolidated financial statements or tax returns. The measurement of tax assets and liabilities is based on enacted tax laws and rates. A valuation allowance, if needed, will reduce deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, based upon the technical merits of the position, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense (benefit) on the consolidated income statements.
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| Fair Value | Fair Value: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value is an exit price, representing the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular instruments. Fair value measures are classified according to a three-tier fair value hierarchy, which is based on the observability of inputs used to measure fair value. Changes in assumptions or in market conditions could significantly affect these estimates. The term “fair value” is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The Company’s approach is to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements. Fair Value Hierarchy A three-level valuation hierarchy has been established under ASC 820 for disclosure of fair value measurements. The valuation hierarchy is based on the observability of inputs to the valuation of an asset or liability as of the measurement date. A financial instrument’s categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement. The levels are defined as follows: •Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. An active market for the asset or liability is a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. •Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. This includes quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability for substantially the full term of the financial instrument. •Level 3 – Unobservable inputs for the asset or liability. These inputs reflect the Company’s assumptions of what market participants would use in pricing the asset or liability. The Company’s policy regarding transfers between levels of the fair value hierarchy is that all transfers are assumed to occur at the end of the reporting period. Estimation of Fair Value Fair value is based on quoted market prices, when available. In cases where a quoted price for an asset or liability is not available, the Company uses valuation models to estimate fair value. These models incorporate inputs such as forward yield curves, loan prepayment assumptions, expected loss assumptions, market volatilities and pricing spreads utilizing market-based inputs where readily available. The Company believes its valuation methods are appropriate and consistent with those that would be used by other market participants. However, imprecision in estimating unobservable inputs and other factors may result in these fair value measurements not reflecting the amount realized in an actual sale or transfer of the asset or liability in a current market exchange. The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company’s assets and liabilities valued at fair value on a recurring basis.
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| Transfers of Financial Assets | Transfers of Financial Assets: Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
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| Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and the equity component of the AFS to HTM debt security transfer discussed in Note 3, “Debt Securities.” In addition, changes in the funded status of the pension plan and supplemental retirement plans are also recognized as separate components of equity.
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| Segments | Segments: The Company has one reportable segment: community banking. The segment primarily encompasses the commercial loan and deposit activities of the Company as well as retail lending and deposit activities in areas surrounding the branches. Our CODM, the Chief Executive Officer, manages the Company’s business activities as one single operating and reportable segment at the consolidated level. Accordingly, our CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes net interest income, noninterest income and noninterest expenses (salary and employee benefits, occupancy, equipment and general, administrative and other) at the consolidated level to manage the Company’s operations.
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| Recent Adopted Accounting Guidance and Recent Accounting Developments | Recent Adopted Accounting Guidance In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which expands disclosures in an entity’s income tax rate reconciliation table and taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. For the year ended December 31, 2025, the Company retrospectively adopted the annual disclosure requirements of ASU 2023-09, except for the expanded disclosure requirements, the adoption of this guidance had no impact on the Company's consolidated financial statements. See Note 17, “Income Taxes” for applicable income tax-related disclosures required by this guidance. In November 2025, the FASB issued ASU 2025-08, “Financial Instruments – Credit Losses (Topic 326): Purchased Loans,” which amends the guidance in ASC 326 on the accounting for certain purchased loans. ASU 2025-08 is effective for interim and annual reporting periods beginning after December 15, 2026. Early adoption is permitted in an interim or annual reporting period in which financial statements have not yet been issued or made available for issuance. In the fourth quarter of 2025, the Company early adopted ASU 2025-08 which amends the guidance in ASC 326 on the accounting for certain purchased loans. Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (purchased seasoned loans) by recognizing them at their purchase price plus an allowance for expected credit losses (gross-up approach). Purchased seasoned loans are defined as either: (1) non-PCD loans that are obtained in a business combination, or (2) non-PCD loans that (a) are obtained in an asset acquisition or upon consolidation of a variable interest entity that is not a business and (b) are acquired more than 90 days after their origination date by a transferee that was not involved in their origination. The Company applied the guidance effective as of January 1, 2025. 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 of 2025, and recorded it as part of the acquired loans initial amortized cost basis. The impact of the adjustments from the adoption of this ASU as of September 30, 2025, and for the three and nine months ended September 30, 2025 is presented in Note 26, “Quarterly Financial Data.” Recent Accounting Developments In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. In January 2025, the FASB also issued ASU 2025-01, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures-Clarifying the Effective Date,” which amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The enhanced income statement expense disclosure requirements apply on a prospective basis. However, retrospective application in all prior periods presented is permitted. The Company is currently evaluating the impact of this update on its consolidated financial statements and related disclosures. The adoption of ASU 2024-03 and ASU 2025-01 will not have an impact on the Company’s financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures.
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BUSINESS COMBINATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Equity Interest Transferred In Merger |
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| Schedule Of Business Combination, Recognized Asset Acquired and Liability Assumed | The following table provides the preliminary purchase price allocation and the assets acquired and liabilities assumed at their estimated fair values as of the Merger date, resulting in a preliminary bargain purchase gain of $145.5 million. The preliminary bargain purchase gain resulted from a combination of factors. First, HomeStreet was an unprofitable company, losing $27.5 million after-tax in 2023, $144.3 million after-tax in 2024 and $8.9 million reported across the first two quarters of 2025. As such, public market investors priced its shares at a significant discount to HomeStreet’s reported tangible book value. Second, HomeStreet was subject to a failed merger attempt with FirstSun Capital Bancorp in 2024. This failed merger occurred due to an inability to obtain regulatory approval. Any failed merger may cause difficulty retaining key employees, which may have contributed to HomeStreet’s desire to find a new merger partner quickly. Third, HomeStreet recorded a valuation allowance in 2024 against its deferred tax asset due to uncertainty surrounding its prospects of achieving future profitability. However, Mechanics Bancorp is a profitable company and expects to be able to utilize the deferred tax assets acquired from HomeStreet over time. $60.0 million of the net assets acquired from HomeStreet came from deferred tax assets, which significantly contributed to the $145.5 million preliminary bargain purchase gain. The estimates of fair value were recorded based on initial valuations at the Merger date and these estimates are considered preliminary as of December 31, 2025, and are subject to adjustment for up to one year after the Merger date, and any changes could be material. In many cases, the determination of fair value required management to make estimates about discount rates, expected future cash flows, market conditions and other future events that are highly subjective in nature and subject to change. Additional information may be obtained during the measurement period that could result in changes to the estimated fair value amounts, and that could result in adjustments to the valuation amounts presented herein. The Company’s taxes are provisional along with the DUS valuation and review of certain contracts assumed in the Merger. The measurement period ends on the earlier of one year after the Merger date or the date the Company concludes that all necessary information about the facts and circumstances that existed as of the Merger date have been obtained.
(1)Revised for the adoption of ASU 2025-08. See Note 26, “Quarterly Financial Data (Unaudited)” for details of the impact of the adoption for the quarter and nine months ended September 30, 2025. (2)Consists of $100.2 million of a DUS license and business line intangible and $90.8 million of core deposit intangibles assets.
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| Schedule Of Financing Receivable, PCD and PSL | The following table provides a summary of these PCD loans at acquisition:
provides a summary of loans considered PSL at acquisition:
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| Schedule of Expenses Related to Merger | The following table shows the amount of the expenses related to the Merger for 2025:
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| Schedule Of Business Combination, Pro Forma Information | The following unaudited pro forma consolidated financial information reflects the results of operations of the Company for 2025 and 2024, respectively, as if the Merger had been completed on January 1, 2024, after giving effect to certain purchase accounting adjustments, primarily related to the preliminary bargain purchase gain, amortization of intangible assets and non-recurring transaction costs. These pro forma results have been prepared for comparative purposes only and are based on estimates and assumptions that have been made solely for purposes of developing such pro forma information and are not necessarily indicative of what the Company’s operating results would have been, had the acquisitions actually taken place at the beginning of the previous annual period.
(1)The pro forma net income before income taxes includes $73.4 million of acquisition and integration costs from the Merger for 2024.
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DEBT SECURITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Debt Securities, Available-for-Sale | The following table presents the amortized cost and fair value of the debt securities portfolio as of the dates indicated:
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| Schedule of Amortized Cost and Fair Value of Held-to-Maturity Securities | The following table presents the amortized cost and fair value of the debt securities portfolio as of the dates indicated:
of securities as of December 31, 2025, were as follows:
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| Schedule of Realized Gain (Loss) | The following table presents proceeds, gross realized gains and gross realized losses from sales and calls of available-for- sale investments:
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| Schedule of Unrealized Gain (Loss) on Investments | The following table summarizes available-for-sale securities with unrealized losses at December 31, 2025 and 2024 aggregated by major security type and length of time in a continuous unrealized loss position:
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LOANS AND CREDIT QUALITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loans Held for Investment | The loan receivables portfolio consisted of the following as of the dates indicated:
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| Activity in Allowance for Credit Losses | The following tables present the activity in the allowance for credit losses on loans by portfolio segment for 2025 and 2024.
(1)ACL on loans identified as PCD and PSL on the Merger date. For additional discussion on PCD loans and PSL, refer to Note 1, “Summary of Significant Accounting Policies,” and Note 2, “Business Combination.”
In addition to the ACL for LHFI, the Company maintains a separate allowance for unfunded loan commitments, which is included in interest payable and other liabilities on the consolidated balance sheets. The following table presents changes in the allowance for credit losses on unfunded lending commitments for the years indicated:
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| Schedule of Loans on Nonaccrual with no Related Allowance for Credit Loss | The following table presents the amortized cost of nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of December 31, 2025 and 2024:
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| Schedule of Credit Quality Indicators | he following table presents the amortized cost by loan risk category and origination year for commercial and industrial and commercial real estate loan classes at December 31, 2025 and 2024. In addition, year-to-date charge-offs for 2025 and 2024 are presented by origination year.
The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in residential and consumer loans based upon year of origination at December 31, 2025 and 2024. In addition, year-to-date charge-offs for 2025 and 2024 are presented by origination year.
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| Schedule of Collateral Dependent Loans | The following table presents the amortized cost of collateral-dependent loans by class and collateral type as of December 31, 2025 and 2024:
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| Schedule of Loans Past Due | The following tables present the aging of the amortized cost in past due loans as of December 31, 2025 and 2024 by class of loans:
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| Schedule of Loan Modifications | The following tables present the amortized cost of loans at December 31, 2025 and 2024 that were both experiencing financial difficulty and modified during 2025 and 2024, by class and by type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to the amortized cost of each class of financing receivable is also presented below.
financial difficulty for 2025 and 2024:
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| Schedule of Loan Modifications, Payment Status | The following table presents the amortized cost of loans that had a payment default (i.e. borrower missed a regularly scheduled payment) and were past due for 2025 and that were modified in the last 12 months.
There were no loans that had a payment default and were past due for 2024 and that were modified in the last 12 months.
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| Schedule of Loans Purchased | The following table presents loan receivables purchased by portfolio segment, excluding loans acquired in business combinations:
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| Financing Receivable, Modified, Past Due | For loan modifications to borrowers experiencing financial difficulty for 2025 and 2024, the following tables present the payment status of loans that were modified in the last 12 months, with related amortized cost balances, as of the dates indicated:
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PREMISES AND EQUIPMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||
| Schedule of Premises and Equipment | The following table presents the Company’s premises and equipment at cost and accumulated depreciation as of the following dates:
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GOODWILL AND OTHER INTANGIBLES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Intangible Assets and Goodwill | The following table presents a summary of other intangible assets as of the periods indicated:
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| Schedule of Estimated Future Amortization Expense | The following table presents estimated future amortization expense as of December 31, 2025:
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LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
| Assets And Liabilities, Lessee | Supplemental cash flow and other information related to leases was as follows:
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| Schedule of Minimum Future Lease Payments | At December 31, 2025, the approximate minimum future lease payments under non-cancellable operating lease agreements were:
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LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
| Schedule of Information Related to Lihtc Investments | The following table presents other information related to the Company’s LIHTC investments for the periods indicated:
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DEPOSITS (Tables) |
12 Months Ended | ||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||
| Deposits Liabilities, Balance Sheet, Reported Amounts [Abstract] | |||||||||||||||||||||
| Certificates of Deposit Outstanding, Schedule of Maturity | At December 31, 2025, certificates of deposit outstanding mature as follows:
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BORROWINGS AND LONG-TERM DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Long-term Debt Instruments | The Company’s outstanding long-term debt as of December 31, 2025 is as follows:
(1)Includes discounts from purchase accounting adjustments as a result of the Merger on September 2, 2025. (2)On March 1, 2026, the Company redeemed at par, its $65 million of Senior Notes, see Note 27, “Subsequent Events.” (3)The Subordinated Notes bear interest at a rate of 3.5% per annum until January 30, 2027. From January 30, 2027, until the maturity date or the date of earlier redemption, the notes will bear interest equal to the three-month Term SOFR plus 215 basis points. (4)These rates reflect the floating rates as of December 31, 2025. (5)Call options are exercisable at par and are callable, without penalty, on a quarterly basis.
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DERIVATIVES AND HEDGING ACTIVITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notional Amount and Fair Value for Derivatives | he notional amounts and fair values for derivatives which are economic hedges. The fair values for derivatives are included in interest receivable and other assets or interest payable and other liabilities on the consolidated balance sheets.
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| Net Gain (Loss) Recognized on Economic Hedge Derivatives | The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated:
(1)Comprised of forward contracts used as an economic hedge of loans held for sale and IRLCs to customers. Included in other noninterest income in the consolidated income statements. (2)Comprised of futures, U.S. Treasury options and forward contracts used as economic hedges of single family MSRs. (3)Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties.
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MORTGAGE BANKING OPERATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage Banking [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Mortgage Loans on Real Estate, by Loan | LHFS consisted of the following:
Loans sold consisted of the following for the periods indicated:
For 2025 and 2024, there were no loans sold as part of securitizations.
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| Net Gain on Loan Origination and Sale Activity | Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following:
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| Company's Portfolio of Loans Serviced for Others | The Company’s portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae and Freddie Mac. The unpaid principal balance of loans serviced for others is as follows:
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| Mortgage Repurchase Losses | The following is a summary of changes in the Company’s liability for estimated single-family mortgage repurchase losses:
(1)Represents the reserve liability acquired from the Merger on September 2, 2025. (2)Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (3)Includes principal losses and accrued interest on repurchased loans, “make-whole” settlements, settlements with claimants and certain related expenses.
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| Revenue from Mortgage Servicing, Including the Effects of Derivative Risk Management Instruments | Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
(1)Represents changes due to collection/realization of expected cash flows and curtailments. (2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. (3)Comprised of net gains on derivatives used as economic hedges of single family MSRs, and net gains on U.S. Treasury notes trading securities used for hedging purposes.
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| Changes in Single Family MSRs Measured at Fair Value | The changes in single family MSRs measured at fair value are as follows:
(1)Represents MSRs acquired from the Merger on September 2, 2025. (2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates (3)Represents changes due to collection/realization of expected cash flows and curtailments.
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| Summary of measurement inputs used in measuring initial fair value of capitalized MSRs | Key economic assumptions used in measuring the initial fair value of capitalized single family MSRs were as follows:
(1)Based on a weighted average. (2)Represents an expected lifetime average CPR used in the model. For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:
(1) Weighted averages of all the inputs within the range. (2) Represents the expected lifetime average CPR used in the model. Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
(1)Based on a weighted average. For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below. Multifamily DUS loans typically contain yield maintenance features that significantly reduce loan prepayments, resulting in a CPR of zero for valuation purposes.
(1) Weighted averages of all the inputs within the range.
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| Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets | To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:
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| Changes in Multifamily MSRs Measured at the Lower of Amortized Cost or Fair Value | The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were as follows:
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| Schedule of Projected Amortization Expense | The following table presents estimated future amortization expense as of December 31, 2025:
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of Loss Contingencies by Contingency | These commitments include the following:
(1)Within the commercial portfolio lines, undistributed construction loan proceeds, where the Company has an obligation to advance funds for construction progress payments were $361.4 million and $129.9 million at December 31, 2025 and 2024, respectively.
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement Methodologies | The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions and classification of the Company’s assets and liabilities valued at fair value on a recurring basis.
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| Fair Value Hierarchy Measurement | The following tables present the levels of the fair value hierarchy for the Company’s assets and liabilities measured at fair value on a recurring basis:
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| Unobservable Inputs Used to Measure Fair Value | The following information presents significant Level 3 unobservable inputs used to measure fair value of certain assets as of December 31, 2025. As of December 31, 2024, there were no assets measured at fair value using Level 3 unobservable inputs.
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| Fair Value Changes and Activity for Level 3 | The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated:
(1)Includes the assets acquired from the Merger on September 2, 2025 The following table presents fair value changes and activity for Level 3 interest rate lock commitments:
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| Fair Value Measurements, Nonrecurring | The following tables present collateral dependent loans that were measured at fair value on a nonrecurring basis, and still held on the consolidated balance sheets, as well as the valuation methodology and unobservable inputs, and the losses resulting from those fair value adjustments for the periods indicated.
(1)The losses represent re-measurements of collateral-dependent impaired loans with specific allowance for credit loss allocations. The following tables present other real estate owned that were measured at fair value on a nonrecurring basis and still held on the consolidated balance sheets, as well as the valuation methodology, unobservable inputs and losses resulting from those fair value adjustments for the periods indicated. Other real estate owned of $1.7 million as of December 31, 2025 was acquired in the Merger and recorded at fair value as of the Merger date.
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| Estimated Fair Value and Carrying Value | The following is a summary of the estimated fair value and carrying value of the Company’s financial instruments not recorded at fair value in the consolidated financial statements as of December 31, 2025 and 2024:
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| Aggregate Fair Value and the Aggregate Unpaid Principal Balance of Loans Held for Sale | The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option as of December 31, 2025. As of December 31, 2024, there were no single family loans held for sale accounted for under the fair value option, since this election was made following the Merger.
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INCOME TAXES (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Components of Income Tax Expense (Benefit) | Income taxes are summarized as follows:
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| Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes for 2025 and 2024 differs from the amounts that would be computed by applying the statutory federal income tax rate of 21.0%. The Company’s income tax expense, statutory federal income tax rate and effective tax rate are reconciled as follows:
(1)State taxes in California make up the majority (greater than 50%) of the tax effect in this category.
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| Schedule of Deferred Tax Assets and Liabilities | The net deferred taxes are reported in interest receivable and other assets in the consolidated balance sheets as of December 31, 2025 and 2024. Deferred tax assets and liabilities at December 31, 2025 and 2024 are as follows:
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| Schedule of Cash Flow, Supplemental Disclosures | Income taxes paid, net of refunds, by jurisdiction for 2025 and 2024 are as follows:
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Revenue From Contracts with Customers | The following is a summary of the revenue from contracts with customers in the scope of ASC 606 that is recognized within noninterest income (loss):
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EARNINGS PER SHARE (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Earnings Per Share, Basic and Diluted | The following tables summarize the calculation of earnings per share under the two-class method:
(1)Periods prior to September 2, 2025 have been restated as a result of the adjustment to common shares outstanding based on the exchange ratio from the Merger of 3,301.0920 for Class A common stock and 330.1092 for Class B common stock. (2)No restricted stock units were antidilutive for 2025 or 2024.
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SHARE-BASED COMPENSATION PLANS (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Restricted Stock Activity |
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RETIREMENT BENEFIT AND PROFIT SHARING PLANS (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Net Period Benefit Costs and Other Information | The following tables reflect the funded status, net periodic benefit cost and other information about the Retirement Plan and the Supplemental Plans as of and for the years ended December 31, 2025 and 2024:
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| Schedule of Net Benefit Costs |
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| Schedule of Defined Benefit Plans Disclosures | The fair value of the Retirement Plan assets at December 31, 2025 and 2024, by asset category, were as follows:
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| Schedule of Allocation of Plan Assets | The following table summarizes the composition of the Retirement Plan trust assets as of December 31, 2025 and 2024:
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| Schedule of Expected Benefit Payments | The following pension benefits and reserves for death benefits are expected to be paid in future years based upon the benefits and life insurance commitments of the Supplemental Plans as of December 31, 2025 and based on expected employment turnover and actuarially determined life expectancies of participants and beneficiaries:
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REGULATORY CAPITAL REQUIREMENTS (Tables) |
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Regulatory Capital Requirements under Banking Regulations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables present the regulatory capital amounts and ratios (inclusive of the capital 2.5% conservation buffer, where applicable) for Mechanics Bancorp and Mechanics Bank as of the dates indicated:
(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 December 31, 2024, regulatory capital ratios are only presented for Mechanics Bank.
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PARENT COMPANY FINANCIAL STATEMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
| Condensed Balance Sheet | Condensed financial information for Mechanics Bancorp is as follows:
(1)Consists of Senior Notes, Subordinated Notes and TRUPS debt. For additional information on long-term debt, refer to Note 11, “Borrowings and Long-Term Debt.” (2)Includes $4.0 million of Subordinated Notes that is eliminated in consolidation, since Mechanics Bank owns $4.0 million of this debt security in its available-for-sale portfolio. On a consolidated basis, long-term debt for Mechanics Bancorp is $192.0 million.
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| Condensed Income Statement |
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| Condensed Cash Flow Statement |
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QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Standards Update and Change in Accounting Principle | The following tables present summarized unaudited quarterly financial data for the consolidated balance sheet as of September 30, 2025, and consolidated income statements for the three and nine months ended September 30, 2025, based on the Company’s early adoption of ASU 2025-08, as described in Note 1, “Summary of Significant Accounting Policies.” This quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments necessary to state fairly the information for the interim periods presented, which the Company considers necessary for a fair presentation when read in conjunction with the consolidated financial statements and notes. The Company believes these comparisons of consolidated quarterly selected financial data are not necessarily indicative of future performance.
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BUSINESS COMBINATION - Summary of PCD Loans at Acquisition (Details) - Mechanics Bank Acquisition $ in Thousands |
Sep. 02, 2025
USD ($)
|
|---|---|
| Business Combination [Line Items] | |
| Principal of PCD loans acquired | $ 2,956,577 |
| PCD ACL at acquisition | (63,494) |
| Non-credit discount on PCD loans | (108,617) |
| Fair value of PCD loans | $ 2,784,466 |
BUSINESS COMBINATION - Summary of PSL Loans at Acquisition (Details) - Mechanics Bank Acquisition $ in Thousands |
Sep. 02, 2025
USD ($)
|
|---|---|
| Business Combination [Line Items] | |
| Principal of PSL acquired | $ 2,872,909 |
| PSL ACL at acquisition | (20,252) |
| Non-credit discount on PSL | (72,365) |
| Fair value of PSL | 2,780,292 |
| Purchased Seasoned Loans | |
| Business Combination [Line Items] | |
| Principal of PSL acquired | $ 2,900,000 |
BUSINESS COMBINATION - Summary of Amount of Expenses Related to Merger (Details) - Mechanics Bank Acquisition $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
USD ($)
| |
| Business Combination [Line Items] | |
| Business combination, acquisition-related cost, expense | $ 73,365 |
| Severance and employee related | |
| Business Combination [Line Items] | |
| Business combination, acquisition-related cost, expense | 28,658 |
| Legal and professional | |
| Business Combination [Line Items] | |
| Business combination, acquisition-related cost, expense | 19,673 |
| System conversion, integration and other | |
| Business Combination [Line Items] | |
| Business combination, acquisition-related cost, expense | $ 25,034 |
BUSINESS COMBINATION - Summary of Pro-forma Financial Information (Details) - Mechanics Bank Acquisition - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Business Combination [Line Items] | ||
| Net interest income | $ 721,675 | $ 694,368 |
| Noninterest income (loss) | 111,327 | (43,044) |
| Net income before income taxes | 248,392 | $ 15,132 |
| Business Combination, Pro Forma Information, Nonrecurring Adjustment, Acquisition-Related Cost | ||
| Business Combination [Line Items] | ||
| Net income before income taxes | $ 73,400 | |
DEBT SECURITIES - Realized Gain/Loss on Investment (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Investments, Debt and Equity Securities [Abstract] | |||
| Proceeds | $ 940,224,000 | $ 1,629,114,000 | |
| Gross gains | $ 0 | 5,493,000 | 0 |
| Gross losses | $ 207,200,000 | $ 925,000 | $ 207,203,000 |
LOANS AND CREDIT QUALITY - Changes in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Allowance for credit losses on loans | ||
| Beginning balance | $ 88,558 | $ 133,778 |
| Initial allowance on acquired PCD loans | 63,494 | |
| Provision (reversal of provision) for credit losses on loans and leases | 20,503 | (1,559) |
| Ending balance | 153,319 | 88,558 |
| Unfunded Loan Commitment | ||
| Allowance for credit losses on loans | ||
| Beginning balance | 4,366 | 4,314 |
| Initial allowance on acquired PCD loans | 3,736 | 0 |
| Provision (reversal of provision) for credit losses on loans and leases | (987) | 52 |
| Ending balance | $ 7,115 | $ 4,366 |
LOANS AND CREDIT QUALITY - Loan and Lease Receivables Purchased (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans and lease receivables purchased | $ 46,164 | $ 142,597 |
| Premium on purchased loan and lease receivables | 182 | 1,800 |
| Residential real estate | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans and lease receivables purchased | 46,164 | 137,190 |
| Auto | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans and lease receivables purchased | $ 0 | $ 5,407 |
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Property, Plant and Equipment [Line Items] | ||
| Total premises and equipment, at cost | $ 309,320 | $ 182,833 |
| Less: Accumulated depreciation | (165,425) | (65,471) |
| Premises and equipment, net | 143,895 | 117,362 |
| Depreciation of premises and equipment | 10,620 | 9,377 |
| Land | ||
| Property, Plant and Equipment [Line Items] | ||
| Total premises and equipment, at cost | 62,773 | 52,151 |
| Building | ||
| Property, Plant and Equipment [Line Items] | ||
| Total premises and equipment, at cost | 86,253 | 66,082 |
| Leaseholds and Leasehold Improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Total premises and equipment, at cost | 63,367 | 26,337 |
| Furniture and Fixtures | ||
| Property, Plant and Equipment [Line Items] | ||
| Total premises and equipment, at cost | $ 96,927 | $ 38,263 |
BANK OWNED LIFE INSURANCE (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Bank Owned Life Insurance [Abstract] | ||
| Bank owned life insurance | $ 170,339 | $ 83,741 |
| Income from bank owned life insurance | $ 4,848 | $ 2,600 |
GOODWILL AND OTHER INTANGIBLES - Narrative (Details) - USD ($) |
12 Months Ended | |||
|---|---|---|---|---|
Nov. 30, 2025 |
Sep. 02, 2025 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Intangible Assets [Line Items] | ||||
| Goodwill | $ 843,305,000 | $ 843,305,000 | ||
| Goodwill impairment loss | $ 0 | |||
| Intangible asset useful life (in years) | 8 years | |||
| Impairment of intangible assets | $ 0 | 0 | ||
| Intangible assets amortization period (in years) | 8 years | |||
| Aggregate amortization of intangible assets | $ 17,134,000 | 13,447,000 | ||
| Trade name intangibles | ||||
| Intangible Assets [Line Items] | ||||
| Impairment of core deposit intangibles | 0 | $ 0 | ||
| DUS License | ||||
| Intangible Assets [Line Items] | ||||
| Impairment of intangible assets | 0 | |||
| Mechanics Bank Acquisition | ||||
| Intangible Assets [Line Items] | ||||
| Goodwill acquired in business combination | $ 0 | |||
| Mechanics Bank Acquisition | DUS License | ||||
| Intangible Assets [Line Items] | ||||
| Intangible assets acquired | $ 100,200,000 | |||
| Core deposit intangibles | Mechanics Bank Acquisition | ||||
| Intangible Assets [Line Items] | ||||
| Intangible assets acquired in merger, core deposits | $ 90,800,000 | |||
GOODWILL AND OTHER INTANGIBLES - Schedule of Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Finite-Lived Intangible Assets [Line Items] | ||
| Net Carrying Value | $ 212,491 | $ 38,744 |
| Core deposit intangibles | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| 2026 | 27,950 | |
| 2027 | 22,173 | |
| 2028 | 16,397 | |
| 2029 | 11,558 | |
| 2030 | 8,461 | |
| Thereafter | 10,196 | |
| Net Carrying Value | $ 96,735 | $ 23,144 |
LEASES - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Lessor, Lease, Description [Line Items] | ||
| Lease expense for operating leases | $ 19,500 | $ 15,000 |
| Minimum | ||
| Lessor, Lease, Description [Line Items] | ||
| Term of renewal options | 5 years | |
| Maximum | ||
| Lessor, Lease, Description [Line Items] | ||
| Term of renewal options | 10 years | |
LEASES -Schedule of Supplemental Information Related to Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Cash paid for amounts included in the measurement of lease liabilities: | ||
| Operating cash flows from operating leases | $ 19,182 | $ 14,953 |
| ROU assets obtained in exchange for lease obligations: | ||
| Operating leases | $ 16,559 | $ 12,392 |
| Weighted-average remaining lease term (in years) | 4 years 8 months 12 days | 5 years 3 months 18 days |
| Weighted-average discount rate | 4.10% | 3.90% |
LEASES - Schedule of Minimum Future Lease Payments (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Leases [Abstract] | ||
| 2026 | $ 25,742 | |
| 2027 | 24,025 | |
| 2028 | 13,933 | |
| 2029 | 8,948 | |
| 2030 | 6,237 | |
| thereafter | 13,376 | |
| Total undiscounted operating lease liabilities | 92,261 | |
| Less: imputed interest | (5,467) | |
| Total operating lease liabilities | $ 86,794 | $ 56,094 |
LOW INCOME HOUSING TAX CREDIT AND COMMUNITY REINVESTMENT ACT INVESTMENTS - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| LIHTC | ||
| Investment Program, Proportional Amortization Method, Elected [Line Items] | ||
| Current balance of investment | $ 43.3 | $ 14.6 |
| Remaining unfunded commitments related to investments | 7.9 | 1.1 |
| CRA | ||
| Investment Program, Proportional Amortization Method, Elected [Line Items] | ||
| Current balance of investment | 79.1 | 55.9 |
| Bank recognized dividend income on investments | $ 4.0 | $ 2.8 |
| Investment, Proportional Amortization Method, Elected, Statement of Financial Position [Extensible Enumeration] | Other assets (liabilities) | Other assets (liabilities) |
DEPOSITS - Deposit Maturity (Details) $ in Thousands |
Dec. 31, 2025
USD ($)
|
|---|---|
| Certificates of deposit outstanding | |
| Within one year | $ 2,728,119 |
| One to two years | 38,233 |
| Two to three years | 8,991 |
| Three to four years | 4,933 |
| Four to five years | 3,072 |
| Thereafter | 1,260 |
| Total | $ 2,784,608 |
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Time certificates of deposits at or above FDIC insurance limit | $ 565,600 | $ 407,700 |
| Public funds included in deposits | 1,300,000 | 1,200,000 |
| Trust deposits | 683 | $ 884 |
| Marketable Securities | Asset Pledged as Collateral | Deposits | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Public funds included in deposits, pledged collateral, amount | $ 1,600,000 |
DERIVATIVES AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Derivative [Line Items] | ||
| Liability for cash collateral received from counterparties | $ 5,600,000 | $ 0 |
| Receivable for cash collateral paid to counterparties | 122,000 | 0 |
| Interest income, securities, US treasury | 658,000 | $ 0 |
| Interest rate swaps | Cooperative Rabobank, U.A. (CRUA) | Not Designated as Hedging Instrument, Economic Hedge | ||
| Derivative [Line Items] | ||
| Liability for cash collateral received from counterparties | $ 3,700,000 | |
DERIVATIVES AND HEDGING ACTIVITIES - Gain (Loss) Recognized in Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Net loss on loan origination and sale activities | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Net gain (loss) on loan origination and sale activities | $ (345) | $ 0 |
| Loan servicing income | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Net gain (loss) on loan origination and sale activities | 283 | 0 |
| Other | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Net gain (loss) on loan origination and sale activities | $ 154 | $ 70 |
MORTGAGE BANKING OPERATIONS - Loans Held for Sale (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans held for sale | $ 5,967 | $ 543 |
| Single Family Residential | Residential real estate | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans held for sale | $ 5,967 | $ 543 |
MORTGAGE BANKING OPERATIONS - Loans Sold (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Proceeds from sale of loans originated as held for sale | $ 195,263 | $ 5,584 |
| CRE, multifamily and SBA | Commercial and industrial | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Proceeds from sale of loans originated as held for sale | 106,104 | 0 |
| Single Family Residential | Residential real estate | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Proceeds from sale of loans originated as held for sale | $ 89,159 | $ 5,584 |
MORTGAGE BANKING OPERATIONS - Gain on Origination and Sale (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Gain on mortgage loan origination and sale activities [Line Items] | ||
| Gain on loan origination and sale activities | $ 2,324 | $ 54 |
| CRE, multifamily and SBA | Commercial and industrial | ||
| Gain on mortgage loan origination and sale activities [Line Items] | ||
| Gain on loan origination and sale activities | 1,538 | 0 |
| Single Family Residential | Residential real estate | ||
| Gain on mortgage loan origination and sale activities [Line Items] | ||
| Gain on loan origination and sale activities | $ 786 | $ 54 |
MORTGAGE BANKING OPERATIONS - Loans Serviced for Others (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans serviced for others | $ 6,237,376 | $ 207,987 |
| Single Family Residential | Residential real estate | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans serviced for others | 4,370,577 | 196,895 |
| CRE, multifamily and SBA | Commercial and industrial | ||
| Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
| Loans serviced for others | $ 1,866,799 | $ 11,092 |
MORTGAGE BANKING OPERATIONS - Mortgage Repurchase Liability (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
USD ($)
| |
| Mortgage Repurchase Losses [Roll Forward] | |
| Balance, beginning of period | $ 3,100 |
| Realized (losses) recoveries, net | (29) |
| Balance, end of period | 4,200 |
| Representations and warranties reserve for loan receivables | Residential real estate | Single Family Residential | |
| Mortgage Repurchase Losses [Roll Forward] | |
| Balance, beginning of period | 0 |
| Reserve liability acquired | 734 |
| Additions, net of adjustments | 3 |
| Balance, end of period | $ 708 |
MORTGAGE BANKING OPERATIONS - Narrative (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Financing Receivable, Impaired [Line Items] | ||
| Service advances | $ 1,200,000 | $ 0 |
| Fair value of single family MSRs | $ 58,095,000 | 0 |
| Expected weighted-average life (in years) | 11 years | |
| GNMA Early buyout loans | ||
| Financing Receivable, Impaired [Line Items] | ||
| Loans receivable, in Ginnie Mae pool | $ 0 | $ 0 |
| Multifamily | Estimate of Fair Value Measurement | ||
| Financing Receivable, Impaired [Line Items] | ||
| Fair value of single family MSRs | $ 28,276,000 |
MORTGAGE BANKING OPERATIONS - Revenue from Mortgage Servicing (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Servicing Income, Net [Abstract] | |||
| Servicing fees and other | $ 7,599 | $ 968 | |
| Servicing Fees, Net of Amortization | 2,859 | 968 | |
| Risk Management, Single Family MSRs [Abstract] | |||
| Changes in fair value of MSRs due to assumptions | (388) | 0 | |
| Net gain from economic hedging | 427 | 0 | |
| Total | 39 | 0 | |
| Loan servicing income | 2,898 | 968 | |
| Multifamily | Residential real estate | |||
| Servicing Income, Net [Abstract] | |||
| Amortization of multifamily and SBA MSRs | (2,628) | 0 | |
| Single Family Residential | |||
| Risk Management, Single Family MSRs [Abstract] | |||
| Changes in fair value of MSRs due to assumptions | (2,112) | ||
| Single Family Residential | Residential real estate | |||
| Servicing Income, Net [Abstract] | |||
| Changes in fair value of single family MSRs - other | $ 2,112 | $ 0 | |
MORTGAGE BANKING OPERATIONS - Single Family MSR Roll Forward (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Servicing Asset at Fair Value, Amount [Roll Forward] | ||
| Beginning balance | $ 0 | |
| Additions And Amortization [Abstract] | ||
| Net additions | 60,595 | |
| Other | (388) | $ 0 |
| Ending balance | 58,095 | 0 |
| Single Family Residential | ||
| Servicing Asset at Fair Value, Amount [Roll Forward] | ||
| Beginning balance | 0 | |
| Additions And Amortization [Abstract] | ||
| MSRs acquired | 60,166 | |
| Originations | 429 | |
| Change in fair value of single family MSRs - other | (388) | |
| Other | (2,112) | |
| Ending balance | $ 58,095 | $ 0 |
MORTGAGE BANKING OPERATIONS - Sensitivity Analysis (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
| Fair value of single family MSRs | $ 58,095 | $ 0 |
| Expected weighted-average life (in years) | 11 years | |
| Single Family Residential | ||
| Key economic assumptions and the sensitivity of the current fair value for single family MSRs | ||
| Fair value of single family MSRs | $ 58,095 | $ 0 |
| Expected weighted-average life (in years) | 8 years 1 month 9 days | |
| CPR shock | ||
| Impact on fair value of 10% increase in CPR | $ (1,530) | |
| Impact on fair value of 20% increase in CPR | (2,981) | |
| Discount rate shock | ||
| Impact on fair value of 100 basis points increase | (2,527) | |
| Impact on fair value of 200 basis points increase | $ (4,932) |
MORTGAGE BANKING OPERATIONS - Multifamily and SBA MSR Roll Forward (Details) - Multifamily $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
USD ($)
| |
| Servicing Asset at Amortized Value, Balance [Roll Forward] | |
| Beginning balance | $ 0 |
| MSRs acquired | 29,367 |
| Originations | 998 |
| Amortization | (2,628) |
| Ending balance | $ 27,737 |
MORTGAGE BANKING OPERATIONS - Key Economic Assumptions (Details) - Discount rate |
Dec. 31, 2025 |
|---|---|
| Multifamily | |
| Fair Value Measurement Inputs and Valuation Techniques | |
| Measurement input (as a percent) | 0.1300 |
| Weighted Average | |
| Fair Value Measurement Inputs and Valuation Techniques | |
| Measurement input (as a percent) | 0.0897 |
| Weighted Average | Multifamily | |
| Fair Value Measurement Inputs and Valuation Techniques | |
| Measurement input (as a percent) | 0.1307 |
| Minimum | Multifamily | |
| Fair Value Measurement Inputs and Valuation Techniques | |
| Measurement input (as a percent) | 0.1300 |
| Maximum | Multifamily | |
| Fair Value Measurement Inputs and Valuation Techniques | |
| Measurement input (as a percent) | 0.1500 |
MORTGAGE BANKING OPERATIONS - Projected Amortization of Mortgage Servicing Rights (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Servicing Asset at Amortized Cost [Line Items] | ||
| Carrying value of multifamily and SBA MSRs | $ 212,491 | $ 38,744 |
| Servicing contracts | ||
| Servicing Asset at Amortized Cost [Line Items] | ||
| 2026 | 6,174 | |
| 2027 | 5,324 | |
| 2028 | 4,787 | |
| 2029 | 4,363 | |
| 2030 | 2,841 | |
| 2031 & thereafter | 4,248 | |
| Carrying value of multifamily and SBA MSRs | $ 27,737 |
COMMITMENTS AND CONTINGENCIES - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Loss Contingencies [Line Items] | ||
| Accrued contingent liability | $ 4,200 | $ 3,100 |
| Financial Standby Letter of Credit | ||
| Loss Contingencies [Line Items] | ||
| Guarantor obligation, term | 3 years |
COMMITMENTS AND CONTINGENCIES - Schedule of Commitments (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Sep. 30, 2025 |
Dec. 31, 2024 |
|---|---|---|---|
| Loss Contingencies [Line Items] | |||
| Loan receivables | $ 14,176,936 | $ 14,568,795 | $ 9,643,497 |
| Unfunded Loan Commitment | |||
| Loss Contingencies [Line Items] | |||
| Loan receivables | 11,830 | 2,765 | |
| Unused Lines Of Credit And Unfunded Loan Commitments | |||
| Loss Contingencies [Line Items] | |||
| Loan receivables | 2,202,762 | 1,133,700 | |
| Financial Standby Letter of Credit | |||
| Loss Contingencies [Line Items] | |||
| Letters of credit | 17,257 | 19,227 | |
| Consumer Portfolio Segment | Unused lines of Credit | |||
| Loss Contingencies [Line Items] | |||
| Loan receivables | 835,480 | 224,812 | |
| Commercial and industrial | |||
| Loss Contingencies [Line Items] | |||
| Loan receivables | 482,170 | 410,040 | |
| Commercial and industrial | Unused lines of Credit | |||
| Loss Contingencies [Line Items] | |||
| Loan receivables | 1,355,452 | 906,123 | |
| Commercial and industrial | Unfunded Construction Loans | |||
| Loss Contingencies [Line Items] | |||
| Loan receivables | $ 361,400 | $ 129,900 |
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Transfers between levels of fair value hierarchy | $ 0 | $ 0 | $ 0 | $ 0 |
| Loans held for sale - multifamily and other | 5,967,000 | 0 | 5,967,000 | 0 |
| Recurring | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Loans held for sale - multifamily and other | 5,967,000 | $ 0 | 5,967,000 | $ 0 |
| Level 3 | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Other real estate owned, fair value | 1,700,000 | 1,700,000 | ||
| Level 3 | Recurring | ||||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
| Loans held for sale - multifamily and other | $ 0 | $ 0 | ||
FAIR VALUE MEASUREMENTS - Fair Value Changes and Activity for Level 3 (Details) - Investment securities AFS $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
USD ($)
| |
| Fair Value Changes and Activity for Level 3 [Roll Forward] | |
| Beginning balance | $ 0 |
| Additions | 1,649 |
| Transfers | 0 |
| Payoffs/Sales | (7) |
| Change in mark to market | (12) |
| Ending balance | $ 1,630 |
FAIR VALUE MEASUREMENTS - Level 3 Interest Lock Commitments (Details) - Interest rate lock commitments $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2025
USD ($)
| |
| Fair Value Changes and Activity for Level 3 [Roll Forward] | |
| Beginning balance, net | $ 0 |
| IRLC acquired | 514 |
| Total realized/unrealized gains | 70 |
| Settlements | (509) |
| Ending balance, net | $ 75 |
FAIR VALUE MEASUREMENTS - Other Real Estate Owned Recorded at Fair Value on a Nonrecurring Basis (Details) $ in Thousands |
12 Months Ended | |
|---|---|---|
|
Dec. 31, 2025
USD ($)
|
Dec. 31, 2024
USD ($)
|
|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Losses due to write downs: other real estate owned | $ (2,314) | $ (1,437) |
| Level 3 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Other real estate owned, fair value | 1,700 | |
| Nonrecurring | Level 3 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Other real estate owned, fair value | 1,675 | 15,600 |
| Losses due to write downs: other real estate owned | $ 0 | $ 1,200 |
| Oher real estate owned, measurement input, percentage | 0.10 | 0.03 |
| Nonrecurring | Level 3 | Weighted Average | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Oher real estate owned, measurement input, percentage | 0.10 | 0.03 |
FAIR VALUE MEASUREMENTS - Fair Value Option (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Fair Value | $ 5,967 | $ 0 |
| Residential real estate | Single Family Residential | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Fair Value | 5,967 | |
| Aggregate Unpaid Principal Balance | 5,883 | |
| Fair Value Less Aggregated Unpaid Principal Balance | 84 | |
| Recurring | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Fair Value | 5,967 | $ 0 |
| Level 2 | Recurring | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Fair Value | $ 5,967 |
INCOME TAXES - Schedule of Components of Income Tax (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
|---|---|---|---|---|
Sep. 30, 2025 |
Sep. 30, 2025 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Current expense (benefit) | ||||
| Federal | $ 29,249 | $ (2,314) | ||
| State | 13,551 | (218) | ||
| Total | 42,800 | (2,532) | ||
| Deferred expense | ||||
| Federal | 6,015 | 7,096 | ||
| State | 4,996 | 2,134 | ||
| Total | 11,011 | 9,230 | ||
| Total tax expense | $ (10,060) | $ 24,161 | $ 53,811 | $ 6,698 |
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Deferred tax assets: | ||
| Credit losses | $ 45,340 | $ 26,782 |
| Accrued liabilities | 26,294 | 25,039 |
| State taxes | 2,665 | 121 |
| Net operating loss and tax credit carryforwards | 37,772 | 2,668 |
| Loan valuation | 45,032 | 0 |
| Operating lease liabilities | 24,329 | 16,167 |
| Interest receivable and other | 944 | 936 |
| Unrealized loss on available-for-sale securities | 23,775 | 24,640 |
| Total deferred tax assets | 206,151 | 96,353 |
| Valuation allowance | (9,947) | 0 |
| Total deferred tax assets, net of valuation allowance | 196,204 | 96,353 |
| Deferred tax liabilities: | ||
| Operating lease right-of-use asset | (23,007) | (15,432) |
| Intangible assets | (74,948) | (11,111) |
| Non marketable securities | (1,233) | (1,585) |
| Bank premises and equipment | (5,656) | (11,754) |
| Deferred loan costs | (3,937) | (3,710) |
| Deposits and long-term debt | (8,178) | 0 |
| Other | (3,544) | (1,115) |
| Total deferred tax liabilities | (120,503) | (44,707) |
| Total net deferred tax assets | $ 75,701 | $ 51,646 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Operating Loss Carryforwards [Line Items] | ||
| Domestic pre-tax income | $ 319,600 | $ 35,700 |
| Effective income tax rate | 16.80% | 18.80% |
| Unrecognized tax benefits | $ 0 | $ 0 |
| Operating loss carryforwards | 184,300 | |
| Operating loss carryforwards, not subject to expiration | 120,200 | |
| Operating loss carryforward, subject to expiration | 64,100 | |
| Tax credit carryforward | 8,400 | |
| Domestic Tax Jurisdiction | ||
| Operating Loss Carryforwards [Line Items] | ||
| Operating loss carryforwards | 117,700 | |
| State and Local Jurisdiction | ||
| Operating Loss Carryforwards [Line Items] | ||
| Operating loss carryforwards | $ 66,600 | |
INCOME TAXES - Schedule of Income Taxes Paid (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Income Tax Contingency [Line Items] | ||
| Federal | $ 22,400 | $ (356) |
| Total | 31,385 | 3,555 |
| California | ||
| Income Tax Contingency [Line Items] | ||
| State and local | 8,403 | 3,282 |
| Other states (less than 5%) | ||
| Income Tax Contingency [Line Items] | ||
| State and local | $ 582 | $ 629 |
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Disaggregation of Revenue [Line Items] | ||
| Noninterest income | $ 49,728 | $ 48,127 |
| Noninterest income (loss) not subject to ASC 606 | 173,177 | (187,247) |
| Total noninterest income (loss) | 222,905 | (139,120) |
| Service charges on deposit accounts | ||
| Disaggregation of Revenue [Line Items] | ||
| Noninterest income | 23,221 | 23,650 |
| Trust fees and commissions | ||
| Disaggregation of Revenue [Line Items] | ||
| Noninterest income | 13,017 | 12,319 |
| ATM network fee income | ||
| Disaggregation of Revenue [Line Items] | ||
| Noninterest income | $ 13,490 | $ 12,158 |
SHARE-BASED COMPENSATION PLANS - Narrative (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
| Share-based compensation expense | $ 5,600,000 | $ 4,600,000 |
| Share-based compensation expense, tax benefit | 1,600,000 | 1,300,000 |
| Share-based compensation expense not yet recognized | $ 8,300,000 | |
| Share-based compensation expense not yet recognized, period for recognition | 2 years 5 months 4 days | |
| Mechanics Bancorp 2025 Equity Incentive Plan | ||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
| Equity incentive plan shares (in shares) | 7,315,390 | |
| Restricted Stock Units (RSUs) | ||
| Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
| Share-based compensation expense, vesting period | 4 years | |
| Restricted stock units vested in period, value | $ 7,100,000 | $ 144,000 |
RETIREMENT BENEFIT AND PROFIT SHARING PLANS - Summary of Allocation of Plan Assets (Details) - Pension Plan - Retirement Plan |
Dec. 31, 2025 |
Dec. 31, 2024 |
|---|---|---|
| Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
| Plan assets | 100.00% | 100.00% |
| Debt securities | ||
| Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
| Plan assets | 0.00% | 0.00% |
| Money market instruments and other | ||
| Defined Benefit Plan, Plan Assets, Allocation [Line Items] | ||
| Plan assets | 100.00% | 100.00% |
RETIREMENT BENEFIT AND PROFIT SHARING PLANS - Schedule of Expected Benefit Payments (Details) - Supplemental Plans - Supplemental Plans $ in Thousands |
Dec. 31, 2025
USD ($)
|
|---|---|
| Defined Benefit Plan Disclosure [Line Items] | |
| 2026 | $ 2,025 |
| 2027 | 1,971 |
| 2028 | 1,883 |
| 2029 | 1,722 |
| 2030 | 1,626 |
| 2031-2035 | $ 6,240 |
RETIREMENT BENEFIT AND PROFIT SHARING PLANS - Defined Contribution Plan (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Defined Contribution Plan Disclosure [Line Items] | ||
| Employer contribution expense | $ 5,100 | |
| Plan participants matching contribution from company, vesting term | 2 years | |
| Mechanics Bank Profit Sharing Plan | ||
| Defined Contribution Plan Disclosure [Line Items] | ||
| Employer contribution expense | $ 947 | $ 3,900 |
| Employer matching contribution, percent of gross pay | 3.50% | 3.50% |
PARENT COMPANY FINANCIAL STATEMENTS - Condensed Income Statements (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
|---|---|---|---|---|
Sep. 30, 2025 |
Sep. 30, 2025 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Expense | ||||
| Noninterest expense | $ 469,557 | $ 345,859 | ||
| Income before income tax expense | $ 45,101 | $ 165,598 | 319,550 | 35,697 |
| Income tax benefit | (10,060) | 24,161 | 53,811 | 6,698 |
| NET INCOME | $ 55,161 | $ 141,437 | 265,739 | 28,999 |
| Total comprehensive income | 328,992 | $ 161,026 | ||
| Parent Company | ||||
| Noninterest Income [Abstract] | ||||
| Income | 53,500 | |||
| Equity in undistributed income from subsidiaries | 106,599 | |||
| Interest and other income | 897 | |||
| Total revenues | 160,996 | |||
| Expense | ||||
| Interest expense on long-term debt | 6,304 | |||
| Noninterest expense | 1,497 | |||
| Total expense | 7,801 | |||
| Income before income tax expense | 153,195 | |||
| Income tax benefit | (1,798) | |||
| NET INCOME | 154,993 | |||
| Other comprehensive income (loss), net | (13) | |||
| Total comprehensive income | $ 154,980 | |||
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2025 |
Dec. 31, 2024 |
Sep. 30, 2025 |
|
| Related Party Transaction [Line Items] | |||
| Loan receivables | $ 14,176,936 | $ 9,643,497 | $ 14,568,795 |
| Total deposits | $ 19,024,997 | 13,941,804 | |
| Mechanics Bancorp | Investor And Ford Financial Fund III, L.P. | |||
| Related Party Transaction [Line Items] | |||
| Percent of common stock owned | 77.00% | ||
| Unfunded Loan Commitment | |||
| Related Party Transaction [Line Items] | |||
| Loan receivables | $ 11,830 | 2,765 | |
| Related Party | |||
| Related Party Transaction [Line Items] | |||
| Loan receivables | 263 | 141 | |
| Total deposits | 3,600 | 3,400 | |
| Related Party | Bank Services Agreement | |||
| Related Party Transaction [Line Items] | |||
| Services provided under Bank Services Agreement | 9,700 | 10,000 | |
| Related Party | Unfunded Loan Commitment | |||
| Related Party Transaction [Line Items] | |||
| Loan receivables | $ 0 | $ 0 | |
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |||
|---|---|---|---|---|
Mar. 01, 2026 |
Feb. 25, 2026 |
Dec. 31, 2025 |
Dec. 31, 2024 |
|
| Common Class A | ||||
| Subsequent Event [Line Items] | ||||
| Dividends declared on common stock (in dollars per share) | $ 0.21 | $ 0.45 | ||
| Common Class B | ||||
| Subsequent Event [Line Items] | ||||
| Dividends declared on common stock (in dollars per share) | $ 2.10 | $ 4.48 | ||
| Subsequent Event | Common Class A | ||||
| Subsequent Event [Line Items] | ||||
| Dividends declared on common stock (in dollars per share) | $ 0.40 | |||
| Subsequent Event | Common Class B | ||||
| Subsequent Event [Line Items] | ||||
| Dividends declared on common stock (in dollars per share) | $ 4.00 | |||
| Senior Notes 6.50% Due 2026 | Senior Notes | ||||
| Subsequent Event [Line Items] | ||||
| Rate | 6.50% | |||
| Senior Notes 6.50% Due 2026 | Senior Notes | Subsequent Event | ||||
| Subsequent Event [Line Items] | ||||
| Redemption price, percentage | 100.00% | |||
| Repayments of debt | $ 65.0 | |||