Washington | 91-0186600 |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
1111 Civic Drive, Suite 390 | |
Walnut Creek, California | 94596 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class A, Common Stock | MCHB | Nasdaq Global Select Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ |
Non-accelerated filer | ☐ | Smaller reporting company | ☒ |
Emerging growth company | ☐ |
Page | ||
ACL | Allowance for credit losses | LHFI | Loans held for investment | |
AFS | Available-for-sale | LHFS | Loans held for sale | |
AOCI | Accumulated other comprehensive income (loss) | LIHTC | Low income housing tax credit | |
ASU | Accounting standards update | LOCOM | Lower of amortized cost or fair value | |
AUM | Assets under management | MBFD | Modifications to borrowers experiencing financial difficulty | |
BOLI | Bank owned life insurance | MBS | Mortgage-backed securities | |
BTFP | Bank Term Funding Program | Merger | Merger on September 2, 2025 in which HomeStreet Bank merged with and into Mechanics Bank, and Mechanics Bank became a wholly-owned subsidiary of Mechanics Bancorp (formerly HomeStreet, Inc.) | |
C&I | Commercial and industrial loans | MSRs | Mortgage servicing rights | |
CECL | Current expected credit loss | OREO | Other real estate owned | |
CODM | Chief operating decision maker | PCD | Purchased credit deteriorated | |
CPI | Consumer Price Index | PD | Probability of default | |
CPR | Constant Prepayment Rate | LGD | Loss given default | |
CRA | Community Reinvestment Act | ROU | Right-of-use | |
CRE | Commercial real estate | RSUs | Restricted stock units | |
DFPI | California Department of Financial Protection and Innovation | SBA | Small Business Administration | |
DUS | Fannie Mae Multifamily Delegated Underwriting and Servicing Program | SEC | Securities and Exchange Commission | |
EPS | Earnings per share | SFR | Single family residential | |
FDIC | Federal Deposit Insurance Corporation | SOFR | Secured Overnight Financing Rate | |
FHLB | Federal Home Loan Bank | TRUPs | Trust preferred securities | |
FRB | Board of Governors of the Federal Reserve System | U.S. GAAP | U.S. Generally Accepted Accounting Principles | |
HTM | Held-to-maturity | |||
IRLC | Interest rate lock commitment | |||
(in thousands, except shares) | September 30, 2025 | December 31, 2024 | |
ASSETS | |||
Cash and cash equivalents | $1,442,647 | $999,711 | |
Trading securities | 50,357 | — | |
Securities available-for-sale, at fair value | 3,490,478 | 3,065,251 | |
Securities held-to-maturity, at amortized cost (fair value of $1,186,260 and $1,196,000 at September 30, 2025 and December 31, 2024, respectively) | 1,363,636 | 1,440,494 | |
Loans held for sale (includes $21,397 carried at fair value at September 30, 2025) | 54,985 | 543 | |
Loan and lease receivables | 14,568,795 | 9,643,497 | |
Allowance for credit losses on loans and leases | (168,959) | (88,558) | |
Net loan and lease receivables | 14,399,836 | 9,554,939 | |
Mortgage servicing rights (includes $59,536 carried at fair value at September 30, 2025) | 88,595 | — | |
Other real estate owned | 1,675 | 15,600 | |
Federal Home Loan Bank stock, at cost | 17,294 | 17,250 | |
Premises and equipment, net | 143,917 | 117,362 | |
Bank-owned life insurance | 169,163 | 83,741 | |
Goodwill | 843,305 | 843,305 | |
Other intangible assets, net | 143,264 | 38,744 | |
Right-of-use asset | 85,657 | 53,545 | |
Interest receivable and other assets | 414,011 | 259,627 | |
TOTAL ASSETS | $22,708,820 | $16,490,112 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
LIABILITIES | |||
Noninterest-bearing demand deposits | $6,748,479 | $5,616,116 | |
Interest-bearing transaction accounts | 7,918,670 | 6,138,909 | |
Savings and time deposits | 4,785,670 | 2,186,779 | |
Total deposits | 19,452,819 | 13,941,804 | |
Long-term debt | 190,123 | — | |
Operating lease liability | 90,796 | 56,094 | |
Interest payable and other liabilities | 200,948 | 190,346 | |
TOTAL LIABILITIES | 19,934,686 | 14,188,244 | |
SHAREHOLDERS’ EQUITY | |||
Common stock, Class A, no par value, Authorized —1,897,500,000 shares, Issued and outstanding, 220,088,687 shares and 200,884,880 shares at September 30, 2025 and December 31, 2024, respectively; Class B, no par value, Authorized — 2,500,000 shares, Issued and outstanding, 1,114,448 shares at September 30, 2025 and December 31, 2024. | 2,401,989 | 2,122,117 | |
Retained earnings | 380,954 | 239,517 | |
Accumulated other comprehensive loss, net of tax | (8,809) | (59,766) | |
TOTAL SHAREHOLDERS’ EQUITY | 2,774,134 | 2,301,868 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $22,708,820 | $16,490,112 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands, except share and per share data) | 2025 | 2024 | 2025 | 2024 | |||
INTEREST INCOME | |||||||
Loans and leases interest and fees | $141,773 | $130,830 | $379,681 | $404,010 | |||
Investment securities | 40,266 | 37,060 | 129,864 | 91,238 | |||
Interest-bearing cash and other | 22,849 | 24,229 | 47,081 | 63,618 | |||
Total interest income | 204,888 | 192,119 | 556,626 | 558,866 | |||
INTEREST EXPENSE | |||||||
Deposits | 57,496 | 52,408 | 150,651 | 140,859 | |||
Borrowed funds | 124 | 8,607 | 124 | 26,428 | |||
Long-term debt | 1,598 | 134 | 1,598 | 810 | |||
Total interest expense | 59,218 | 61,149 | 152,373 | 168,097 | |||
Net interest income | 145,670 | 130,970 | 404,253 | 390,769 | |||
Provision for credit losses on loans and leases | 46,058 | 6,730 | 42,663 | 2,684 | |||
Provision for credit losses on unfunded lending commitments | 960 | 13 | 329 | 517 | |||
Net interest income after provision for credit losses | 98,652 | 124,227 | 361,261 | 387,568 | |||
NONINTEREST INCOME (LOSS) | |||||||
Service charges on deposit accounts | 5,875 | 6,007 | 16,861 | 17,854 | |||
Trust fees and commissions | 3,117 | 3,176 | 9,452 | 8,841 | |||
ATM network fee income | 3,425 | 3,109 | 9,353 | 9,084 | |||
Loan servicing income | 680 | 202 | 1,025 | 786 | |||
Net gain (loss) on sales and calls of investment securities | 155 | — | 4,292 | (207,203) | |||
Income from bank-owned life insurance | 2,120 | 1,010 | 3,149 | 2,144 | |||
Bargain purchase gain | 90,363 | — | 90,363 | — | |||
Other | 4,043 | 3,400 | 9,889 | 10,839 | |||
Total noninterest income (loss) | 109,778 | 16,904 | 144,384 | (157,655) | |||
NONINTEREST EXPENSE | |||||||
Salaries and employee benefits | 54,168 | 47,072 | 150,753 | 147,717 | |||
Occupancy | 9,566 | 8,028 | 25,875 | 24,113 | |||
Equipment | 7,288 | 5,807 | 19,445 | 17,643 | |||
Professional services | 5,560 | 7,091 | 16,383 | 15,398 | |||
FDIC assessments and regulatory fees | 2,722 | 2,917 | 7,148 | 8,679 | |||
Amortization of intangible assets | 4,251 | 3,302 | 9,655 | 10,705 | |||
Data processing | 3,315 | 2,294 | 6,865 | 6,734 | |||
Loan related | 4,439 | 1,577 | 9,236 | 5,416 | |||
Marketing and advertising | 680 | 963 | 2,008 | 2,603 | |||
Other real estate owned related | (103) | 201 | 2,685 | 1,888 | |||
Acquisition and integration costs | 63,869 | — | 69,858 | — | |||
Other | 7,574 | 6,399 | 20,136 | 20,514 | |||
Total noninterest expense | 163,329 | 85,651 | 340,047 | 261,410 | |||
Income (loss) before provision for income tax expense | 45,101 | 55,480 | 165,598 | (31,497) | |||
PROVISION (BENEFIT) FOR INCOME TAXES | (10,060) | 15,536 | 24,161 | (8,833) | |||
NET INCOME (LOSS) | $55,161 | $39,944 | $141,437 | $(22,664) | |||
Basic earnings per share | |||||||
Class A common stock | $0.25 | $0.19 | $0.66 | $(0.11) | |||
Class B common stock | $2.53 | $1.88 | $6.60 | $(1.07) | |||
Diluted earnings per share | |||||||
Class A common stock | $0.25 | $0.19 | $0.66 | $(0.11) | |||
Class B common stock | $2.53 | $1.88 | $6.60 | $(1.07) | |||
Basic weighted-average shares outstanding | |||||||
Class A common stock | 207,189,764 | 200,884,880 | 203,012,384 | 200,876,688 | |||
Class B common stock | 1,114,448 | 1,114,448 | 1,114,448 | 1,114,448 | |||
Diluted weighted-average shares outstanding | |||||||
Class A common stock | 207,258,678 | 200,977,311 | 203,075,003 | 200,876,688 | |||
Class B common stock | 1,114,448 | 1,114,448 | 1,114,448 | 1,114,448 | |||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
NET INCOME (LOSS) | $55,161 | $39,944 | $141,437 | $(22,664) | |||
Other comprehensive income (loss) | |||||||
Net change in unrealized gain on investment securities available-for-sale | 31,772 | 62,777 | 74,273 | 44,512 | |||
Reclassification adjustment for accretion of unrealized holding loss from the transfer of securities from available-for-sale to held-to-maturity debt securities | 627 | 648 | 1,880 | 1,943 | |||
Reclassification adjustment for net realized (gain) loss on securities available-for-sale included in net income | (155) | — | (4,292) | 207,203 | |||
Change in defined benefit pension liability obligations | 72 | (31) | 217 | (94) | |||
Other comprehensive income before tax | 32,316 | 63,394 | 72,078 | 253,564 | |||
Income tax impact of: | |||||||
Net change in unrealized gain on investment securities available-for-sale | 9,366 | 17,944 | 21,718 | 12,234 | |||
Reclassification adjustment for accretion of unrealized holding loss from the transfer of securities from available-for-sale to held-to-maturity debt securities | 284 | 185 | 645 | 555 | |||
Reclassification adjustment for net realized (gain) loss on securities available-for-sale included in net income | (46) | — | (1,255) | 59,716 | |||
Change in defined benefit pension liability obligations | (29) | (9) | 13 | (27) | |||
Total | 9,575 | 18,120 | 21,121 | 72,478 | |||
Other comprehensive income | 22,741 | 45,274 | 50,957 | 181,086 | |||
Total comprehensive income | $77,902 | $85,218 | $192,394 | $158,422 | |||
Class A and Class B Common Stock | Accumulated Other Comprehensive Income (Loss), Net | ||||||||||
(in thousands, except share data) | Shares | Amount | Retained Earnings | Securities | Defined Benefit Obligations | Total Shareholders’ Equity | |||||
For the quarter ended September 30, 2024 | |||||||||||
Balance, June 30, 2024 | 201,999,328 | $2,122,117 | $177,906 | $(63,768) | $7,787 | $2,244,042 | |||||
Net income | — | — | 39,944 | — | — | 39,944 | |||||
Other comprehensive income (loss), net of tax | — | — | — | 45,296 | (22) | 45,274 | |||||
Cash dividends declared Class A common stock ($0.14 per share) | — | — | (28,419) | — | — | (28,419) | |||||
Cash dividends declared Class B common stock ($1.41 per share) | — | — | (1,577) | — | — | (1,577) | |||||
Balance, September 30, 2024 | 201,999,328 | $2,122,117 | $187,854 | $(18,472) | $7,765 | $2,299,264 | |||||
For the nine months ended September 30, 2024 | |||||||||||
Balance, December 31, 2023 | 201,982,823 | $2,121,888 | $305,510 | $(199,625) | $7,832 | $2,235,605 | |||||
Net loss | — | — | (22,664) | — | — | (22,664) | |||||
Other comprehensive income (loss), net of tax | — | — | — | 181,153 | (67) | 181,086 | |||||
Common stock issued - stock awards | 16,505 | 229 | — | — | — | 229 | |||||
Cash dividends declared Class A common stock ($0.45 per share) | — | — | (89,999) | — | — | (89,999) | |||||
Cash dividends declared Class B common stock ($4.48 per share) | — | — | (4,993) | — | — | (4,993) | |||||
Balance, September 30, 2024 | 201,999,328 | $2,122,117 | $187,854 | $(18,472) | $7,765 | $2,299,264 | |||||
For the quarter ended September 30, 2025 | |||||||||||
Balance, June 30, 2025 | 202,015,832 | $2,122,374 | $325,793 | $(35,945) | $4,395 | $2,416,617 | |||||
Net income | — | — | 55,161 | — | — | 55,161 | |||||
Other comprehensive income, net of tax | — | — | — | 22,640 | 101 | 22,741 | |||||
Share-based compensation expense | — | 785 | — | — | — | 785 | |||||
Common stock issued from Merger | 19,163,904 | 265,803 | — | — | — | 265,803 | |||||
Common stock issued from stock awards, net | 23,399 | (616) | — | — | — | (616) | |||||
Reclassification of liability classified awards to equity | — | 13,643 | — | — | — | 13,643 | |||||
Balance, September 30, 2025 | 221,203,135 | $2,401,989 | $380,954 | $(13,305) | $4,496 | $2,774,134 | |||||
For the nine months ended September 30, 2025 | |||||||||||
Balance, December 31, 2024 | 201,999,328 | $2,122,117 | $239,517 | $(64,058) | $4,292 | $2,301,868 | |||||
Net income | — | — | 141,437 | — | — | 141,437 | |||||
Other comprehensive income, net of tax | — | — | — | 50,753 | 204 | 50,957 | |||||
Share-based compensation expense | — | 785 | — | — | 785 | ||||||
Common stock issued from Merger | 19,163,904 | 265,803 | — | — | — | 265,803 | |||||
Common stock issued from stock awards, net | 39,903 | (359) | — | — | — | (359) | |||||
Reclassification of liability classified awards to equity | — | 13,643 | — | — | — | 13,643 | |||||
Balance, September 30, 2025 | 221,203,135 | $2,401,989 | $380,954 | $(13,305) | $4,496 | $2,774,134 | |||||
Nine Months Ended September 30, | |||
(in thousands) | 2025 | 2024 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $141,437 | $(22,664) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Provision for credit losses on loans and leases | 42,663 | 2,684 | |
Originations of loans held for sale | (61,287) | (4,093) | |
Proceeds from sales and principal collected on loans held for sale | 46,993 | 4,072 | |
Net fair value adjustment and gain on sale of loans held for sale | (659) | (42) | |
Provision for credit losses on unfunded lending commitments | 329 | 517 | |
Amortization of premiums and discounts on investment securities | 3,178 | 7,565 | |
Depreciation of premises and equipment | 7,108 | 7,063 | |
Amortization of intangible assets | 9,655 | 10,705 | |
Amortization of premiums and discounts on debt and deposits | 700 | 30 | |
Net loss on debt extinguishment | 835 | — | |
Share-based compensation expense | 785 | — | |
Increase in cash surrender value of bank-owned life insurance | (3,198) | (2,130) | |
Net (gain) loss on sales and calls of investment securities | (4,292) | 207,203 | |
Net loss on sale, disposal and write-down of other real estate owned | 3,442 | 1,226 | |
Net loss (gain) on sale and disposal of premises and equipment | 100 | (856) | |
Deferred income tax expense | (3,844) | 9,418 | |
Amortization of deferred loan fees and costs | 9,909 | 15,428 | |
Amortization of premiums and discounts on purchased loans | (7,959) | (3,327) | |
Origination, amortization and change in fair value of MSRs, net | 1,108 | — | |
Change in fair value of trading securities | (98) | — | |
Bargain purchase gain | (90,363) | — | |
Changes in: | |||
Interest receivable and other assets | 53,598 | 571 | |
Interest payable and other liabilities | (70,471) | (16,012) | |
Net cash provided by operating activities | 79,669 | 217,358 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Securities available-for-sale: | |||
Purchases | (561,139) | (2,154,513) | |
Sales | 930,123 | 1,629,111 | |
Maturities, calls and paydowns | 252,179 | 199,226 | |
Securities held-to-maturity: | |||
Maturities, calls and paydowns | 77,720 | 75,828 | |
Loan originations and principal collections, net | 835,542 | 1,016,794 | |
Purchases of loans | (172,296) | (223,900) | |
Recoveries of loans charged-off | 9,213 | 13,053 | |
Proceeds from the settlement of bank-owned life insurance | 6,748 | 1,113 | |
Proceeds from sales of other real estate owned | 13,303 | 186 | |
Proceeds from sales of premises and equipment | 887 | 2,621 | |
Purchases of premises and equipment | (3,023) | (3,907) | |
Proceeds from sale of Federal Home Loan Bank stock | 49,873 | — | |
Net cash acquired in Merger | 156,890 | — | |
Net cash provided by investing activities | 1,596,020 | 555,612 | |
Company | Mechanics Bank | |||
Shares of voting common stock outstanding and converted to shares as of September 2, 2025 | 18,920,808 | 60,859 | ||
Shares of PSUs outstanding that vested and converted to shares as of September 2, 2025 | 243,096 | — | ||
Shares of voting common stock outstanding and converted to shares as of September 2, 2025, after PSU vesting | 19,163,904 | 60,859 | ||
Fixed exchange ratio | 3,301.0920 | |||
Shares of non-voting common stock outstanding as of September 2, 2025 | 3,376 | |||
Fixed exchange ratio | 330.1092 | |||
Company shares issued to Mechanics Bank shareholders | 202,015,832 | |||
Company Ownership as of September 2, 2025 | Number of Shares | Percentage Ownership | ||
Mechanics Bank shareholders | 202,015,832 | 91.34% | ||
Company shareholders | 19,163,904 | 8.66% | ||
221,179,736 | 100% | |||
Ratio of Company to Mechanics Bank | 9% | |||
Reverse Acquisition Purchase Price Determination | ||||
Number of Mechanics Bank shares issued to Company shareholders | 19,163,904 | |||
Company price per share as of August 29, 2025 | $13.87 | |||
Purchase price for accounting purposes | $265,803,348 |
(in thousands) | September 2, 2025 | |
Net assets identified | ||
Purchase price consideration | $265,803 | |
Fair value of assets acquired: | ||
Cash and cash equivalents | $156,890 | |
Total investment securities | 1,028,627 | |
Loans held for sale | 39,489 | |
Loans held for investment | 5,625,463 | |
Allowance for credit losses | (63,494) | |
Mortgage servicing rights | 89,704 | |
Premises and equipment, net | 31,979 | |
Other intangible assets, net | 114,207 | |
Deferred tax assets | 81,420 | |
Other assets | 283,208 | |
Total assets acquired | $7,387,493 | |
Fair value of liabilities assumed: | ||
Deposits | $5,743,725 | |
FHLB advances | 1,005,370 | |
Long-term debt | 193,466 | |
Accrued interest payable and other liabilities | 88,766 | |
Total liabilities assumed | $7,031,327 | |
Net assets acquired | 356,166 | |
Bargain purchase gain | $90,363 | |
(in thousands) | Quarter Ended September 30, 2025 | Nine Months Ended September 30, 2025 | |
Severance and employee related | $27,795 | $27,795 | |
Legal and professional | 11,947 | 17,683 | |
System conversion, integration and other | 24,127 | 24,380 | |
$63,869 | $69,858 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Net interest income | $171,854 | $290,698 | $502,713 | $878,684 | |||
Noninterest income (loss) | 117,263 | 26,994 | 178,812 | (37,220) | |||
Net income before income taxes (1) | 38,205 | 170,919 | 144,157 | 337,865 | |||
September 30, 2025 | |||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||
Securities available-for-sale | |||||||
Obligations of states and political subdivisions | $459,834 | $8,954 | $(918) | $467,870 | |||
Mortgage-backed securities - residential | 2,373,146 | 28,273 | (27,264) | 2,374,155 | |||
Mortgage-backed securities - commercial | 389,469 | 1,402 | (12,693) | 378,178 | |||
Collateralized loan obligations | 188,500 | 189 | — | 188,689 | |||
Corporate bonds | 56,558 | 417 | (3,491) | 53,484 | |||
U.S. Treasury securities | 20,597 | — | (18) | 20,579 | |||
Agency debentures | 7,545 | 1 | (23) | 7,523 | |||
Total securities available-for-sale | $3,495,649 | $39,236 | $(44,407) | $3,490,478 | |||
Securities held-to-maturity | |||||||
Obligations of states and political subdivisions | $15,082 | $503 | $(9) | $15,576 | |||
Mortgage-backed securities - residential | 1,037,566 | — | (144,497) | 893,069 | |||
Mortgage-backed securities - commercial | 310,988 | — | (33,373) | 277,615 | |||
Total securities held-to-maturity | $1,363,636 | $503 | $(177,879) | $1,186,260 | |||
December 31, 2024 | |||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||
Securities available-for-sale | |||||||
Obligations of states and political subdivisions | $91,799 | $699 | $(1,199) | $91,299 | |||
Mortgage-backed securities - residential | 2,694,745 | 2,107 | (53,164) | 2,643,688 | |||
Mortgage-backed securities - commercial | 259,793 | 22 | (18,953) | 240,862 | |||
Collateralized loan obligations | 50,000 | — | — | 50,000 | |||
Corporate bonds | 43,968 | — | (4,566) | 39,402 | |||
Total securities available-for-sale | $3,140,305 | $2,828 | $(77,882) | $3,065,251 | |||
Securities held-to-maturity | |||||||
Obligations of states and political subdivisions | $14,193 | $509 | $(30) | $14,672 | |||
Mortgage-backed securities - residential | 1,115,389 | — | (196,949) | 918,440 | |||
Mortgage-backed securities - commercial | 310,912 | — | (48,024) | 262,888 | |||
Total securities held-to-maturity | $1,440,494 | $509 | $(245,003) | $1,196,000 | |||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Proceeds | $1,801 | $— | $931,770 | $1,629,114 | |||
Gross gains | 155 | — | 5,215 | — | |||
Gross losses | — | — | 923 | 207,203 | |||
September 30, 2025 | |||||||||||
Less than 12 months | 12 months or more | Total | |||||||||
(dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||
Obligations of states and political subdivisions | $60,303 | $222 | $31,326 | $696 | $91,629 | $918 | |||||
Mortgage-backed securities - residential | 196,863 | 517 | 438,518 | 26,747 | 635,381 | 27,264 | |||||
Mortgage-backed securities - commercial | 46,281 | 69 | 158,651 | 12,624 | 204,932 | 12,693 | |||||
Corporate bonds | 3,387 | 121 | 26,629 | 3,370 | 30,016 | 3,491 | |||||
U.S. Treasury securities | 20,579 | 18 | — | — | 20,579 | 18 | |||||
Agency debentures | 6,511 | 23 | — | — | 6,511 | 23 | |||||
Total | $333,924 | $970 | $655,124 | $43,437 | $989,048 | $44,407 | |||||
Number of securities with unrealized losses | 142 | 252 | 394 | ||||||||
December 31, 2024 | |||||||||||
Less than 12 months | 12 months or more | Total | |||||||||
(dollars in thousands) | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||
Obligations of states and political subdivisions | $19,273 | $162 | $28,394 | $1,037 | $47,667 | $1,199 | |||||
Mortgage-backed securities - residential | 1,381,125 | 15,337 | 311,751 | 37,827 | 1,692,876 | 53,164 | |||||
Mortgage-backed securities - commercial | 98,071 | 422 | 107,118 | 18,531 | 205,189 | 18,953 | |||||
Corporate bonds | — | — | 39,402 | 4,566 | 39,402 | 4,566 | |||||
Total | $1,498,469 | $15,921 | $486,665 | $61,961 | $1,985,134 | $77,882 | |||||
Number of securities with unrealized losses | 60 | 280 | 340 | ||||||||
(in thousands) | September 30, 2025 | December 31, 2024 | |
Commercial and industrial | $547,311 | $410,040 | |
Commercial real estate | |||
Multifamily | 5,448,374 | 2,794,581 | |
Non-owner occupied | 1,864,040 | 1,657,597 | |
Owner occupied | 709,239 | 360,100 | |
Construction and land development | 535,776 | 104,430 | |
Residential real estate | 3,907,101 | 2,280,963 | |
Auto | 954,615 | 1,596,935 | |
Other consumer | 602,339 | 438,851 | |
Total loan and lease receivables before allowance for credit losses | 14,568,795 | 9,643,497 | |
Allowance for credit losses on loans and leases | (168,959) | (88,558) | |
Net loan and lease receivables | $14,399,836 | $9,554,939 |
(in thousands) | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Auto | Other Consumer | Total | |||||
Quarter Ended September 30, 2025 | |||||||||||
Allowance for credit losses on loans and leases | |||||||||||
Beginning balance | $3,456 | $33,599 | $4,977 | $23,867 | $2,435 | $68,334 | |||||
Initial allowance on acquired PCD loans (1) | 15,923 | 42,934 | 4,612 | 1 | 24 | 63,494 | |||||
Provision for credit losses | 4,311 | 24,780 | 12,613 | 3,553 | 801 | 46,058 | |||||
Loans charged off | (484) | (250) | (9) | (11,365) | (695) | (12,803) | |||||
Recoveries | 38 | — | — | 3,677 | 161 | 3,876 | |||||
Ending balance | $23,244 | $101,063 | $22,193 | $19,733 | $2,726 | $168,959 |
(in thousands) | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Auto | Other Consumer | Total | |||||
Quarter Ended September 30, 2024 | |||||||||||
Allowance for credit losses on loans and leases | |||||||||||
Beginning balance | $5,409 | $34,092 | $6,741 | $58,698 | $3,081 | $108,021 | |||||
Provision for credit losses | (103) | 590 | 58 | 5,730 | 455 | 6,730 | |||||
Loans charged off | (313) | — | — | (13,318) | (941) | (14,572) | |||||
Recoveries | 12 | — | — | 3,025 | 265 | 3,302 | |||||
Ending balance | $5,005 | $34,682 | $6,799 | $54,135 | $2,860 | $103,481 |
(in thousands) | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Auto | Other Consumer | Total | |||||
Nine Months Ended September 30, 2025 | |||||||||||
Allowance for credit losses on loans and leases | |||||||||||
Beginning balance | $4,869 | $35,097 | $4,656 | $41,282 | $2,654 | $88,558 | |||||
Initial allowance on acquired PCD loans (1) | 15,923 | 42,934 | 4,612 | 1 | 24 | 63,494 | |||||
Provision for credit losses | 2,864 | 23,282 | 12,934 | 2,144 | 1,439 | 42,663 | |||||
Loans charged off | (705) | (250) | (9) | (32,125) | (1,880) | (34,969) | |||||
Recoveries | 293 | — | — | 8,431 | 489 | 9,213 | |||||
Ending balance | $23,244 | $101,063 | $22,193 | $19,733 | $2,726 | $168,959 |
(in thousands) | Commercial and Industrial | Commercial Real Estate | Residential Real Estate | Auto | Other Consumer | Total | |||||
Nine Months Ended September 30, 2024 | |||||||||||
Allowance for credit losses on loans and leases | |||||||||||
Beginning balance | $5,805 | $31,486 | $6,745 | $87,053 | $2,689 | $133,778 | |||||
Provision (reversal of provision) for credit losses | (1,219) | 3,196 | 64 | (1,567) | 2,210 | 2,684 | |||||
Loans charged off | (525) | — | (10) | (42,850) | (2,649) | (46,034) | |||||
Recoveries | 944 | — | — | 11,499 | 610 | 13,053 | |||||
Ending balance | $5,005 | $34,682 | $6,799 | $54,135 | $2,860 | $103,481 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Allowance for credit losses on unfunded lending commitments | |||||||
Beginning balance | $3,735 | $4,818 | $4,366 | $4,314 | |||
Initial allowance on acquired loans | 3,736 | — | 3,736 | — | |||
Provision for credit losses | 960 | 13 | 329 | 517 | |||
Ending balance | $8,431 | $4,831 | $8,431 | $4,831 | |||
September 30, 2025 | |||||
(in thousands) | Nonaccrual With No Allowance for Credit Loss | Total Nonaccrual | Loans Past Due 90 Days or More Still Accruing | ||
Commercial and industrial | $1,303 | $23,707 | $— | ||
Commercial real estate | |||||
Multifamily | 1,816 | 3,430 | — | ||
Non-owner occupied | 3,371 | 15,018 | — | ||
Owner occupied | 1,177 | 2,854 | — | ||
Construction and land development | 140 | 2,987 | — | ||
Residential real estate | 1,302 | 7,596 | 2,653 | ||
Auto | 1 | 4,986 | — | ||
Other consumer | 8 | 8 | — | ||
Total | $9,118 | $60,586 | $2,653 | ||
December 31, 2024 | |||||
(in thousands) | Nonaccrual With No Allowance for Credit Loss | Total Nonaccrual | Loans Past Due 90 Days or More Still Accruing | ||
Commercial and industrial | $1,145 | $1,145 | $211 | ||
Commercial real estate | |||||
Multifamily | — | — | — | ||
Non-owner occupied | — | — | — | ||
Owner occupied | — | — | — | ||
Construction and land development | 441 | 441 | — | ||
Residential real estate | 2,854 | 2,854 | |||
Auto | 564 | 6,252 | — | ||
Other consumer | 1 | 1 | — | ||
Total | $5,005 | $10,693 | $211 | ||
Quarter Ended September 30, 2025 | |||||
(dollars in thousands) | Principal Forgiveness | Weighted- Average Interest Rate Reduction | Weighted- Average Term Extension <months> | ||
Commercial and industrial | $— | —% | 18 | ||
Commercial real estate | |||||
Construction and land development | — | —% | 18 | ||
Residential real estate | — | —% | 67 | ||
Total | $— | —% | 26 | ||
Quarter Ended September 30, 2024 | |||||
(dollars in thousands) | Principal Forgiveness | Weighted- Average Interest Rate Reduction | Weighted- Average Term Extension <months> | ||
Commercial and industrial | $— | —% | 20 | ||
Residential real estate | — | —% | 12 | ||
Total | $— | —% | 18 | ||
Nine Months Ended September 30, 2025 | |||||
(dollars in thousands) | Principal Forgiveness | Weighted- Average Interest Rate Reduction | Weighted- Average Term Extension <months> | ||
Commercial and industrial | $— | —% | 25 | ||
Commercial real estate | |||||
Construction and land development | — | —% | 18 | ||
Residential real estate | — | —% | 70 | ||
Total | $— | —% | 31 | ||
Nine Months Ended September 30, 2024 | |||||
(dollars in thousands) | Principal Forgiveness | Weighted- Average Interest Rate Reduction | Weighted- Average Term Extension <months> | ||
Commercial and industrial | $— | —% | 28 | ||
Commercial real estate | |||||
Non-owner occupied | — | —% | 9 | ||
Residential real estate | — | —% | 12 | ||
Total | $— | —% | 10 | ||
September 30, 2025 | |||||||
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 89 Days Past Due | Total Past Due | |||
Commercial and industrial | $— | $— | $4,158 | $4,158 | |||
Commercial real estate | |||||||
Construction and land development | — | — | 2,847 | 2,847 | |||
Residential real estate | 408 | — | — | 408 | |||
Total | $408 | $— | $7,005 | $7,413 | |||
September 30, 2024 | |||||||
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 89 Days Past Due | Total Past Due | |||
Commercial and industrial | $447 | $— | $— | $447 | |||
Total | $447 | $— | $— | $447 | |||
September 30, 2025 | |||||||
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 89 Days Past Due | Total Past Due | |||
Commercial and industrial | $— | $— | $4,158 | $4,158 | |||
Commercial real estate | |||||||
Multifamily | — | — | 1,614 | 1,614 | |||
Construction and land development | — | — | 2,847 | 2,847 | |||
Residential real estate | 408 | — | — | 408 | |||
Total | $408 | $— | $8,619 | $9,027 | |||
September 30, 2024 | |||||||
(in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | Greater than 89 Days Past Due | Total Past Due | |||
Commercial and industrial | $447 | $— | $— | $447 | |||
Total | $447 | $— | $— | $447 | |||
(in thousands) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | ||||||||
September 30, 2025 | |||||||||||||||||
Commercial and industrial | |||||||||||||||||
Risk rating | |||||||||||||||||
Pass | $18,360 | $44,507 | $55,030 | $32,011 | $27,792 | $83,171 | $226,292 | $885 | $488,048 | ||||||||
Special mention | — | 114 | — | 493 | 1,078 | 2,932 | 479 | — | 5,096 | ||||||||
Substandard | 68 | 634 | 382 | 33,126 | 600 | 15,952 | 3,405 | — | 54,167 | ||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||
Total | $18,428 | $45,255 | $55,412 | $65,630 | $29,470 | $102,055 | $230,176 | $885 | $547,311 | ||||||||
Year-to-date gross charge-offs | $— | $383 | $100 | $— | $16 | $— | $206 | $— | $705 | ||||||||
Multifamily | |||||||||||||||||
Risk rating | |||||||||||||||||
Pass | $52,711 | $180,574 | $459,247 | $2,212,986 | $1,183,086 | $1,094,711 | $38,131 | $— | $5,221,446 | ||||||||
Special mention | — | — | — | 49,972 | 24,099 | 43,439 | — | — | 117,510 | ||||||||
Substandard | — | — | 6,553 | 63,028 | 24,356 | 15,481 | — | — | 109,418 | ||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||
Total | $52,711 | $180,574 | $465,800 | $2,325,986 | $1,231,541 | $1,153,631 | $38,131 | $— | $5,448,374 | ||||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | $— | ||||||||
Non-owner occupied | |||||||||||||||||
Risk rating | |||||||||||||||||
Pass | $3,057 | $13,810 | $36,000 | $385,373 | $138,952 | $1,124,892 | $41,734 | $— | $1,743,818 | ||||||||
Special mention | — | — | — | — | — | 58,762 | — | — | 58,762 | ||||||||
Substandard | — | — | — | — | — | 61,460 | — | — | 61,460 | ||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||
Total | $3,057 | $13,810 | $36,000 | $385,373 | $138,952 | $1,245,114 | $41,734 | $— | $1,864,040 | ||||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $250 | $— | $— | $250 | ||||||||
Owner occupied | |||||||||||||||||
Risk rating | |||||||||||||||||
Pass | $19,286 | $11,012 | $27,972 | $112,543 | $76,237 | $386,615 | $6,248 | $— | 639,913 | ||||||||
Special mention | — | — | — | 10,282 | 7,017 | 39,718 | — | — | 57,017 | ||||||||
Substandard | — | — | — | 274 | 5,211 | 6,824 | — | — | 12,309 | ||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||
Total | $19,286 | $11,012 | $27,972 | $123,099 | $88,465 | $433,157 | $6,248 | $— | $709,239 | ||||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | $— | ||||||||
Construction and land development | |||||||||||||||||
Risk rating | |||||||||||||||||
Pass | $236,608 | $179,266 | $73,857 | $13,823 | $5,049 | $13,586 | $600 | $— | $522,789 | ||||||||
Special mention | — | — | — | 10,000 | — | — | — | — | 10,000 | ||||||||
Substandard | — | — | — | — | — | 2,987 | — | — | 2,987 | ||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||
Total | $236,608 | $179,266 | $73,857 | $23,823 | $5,049 | $16,573 | $600 | $— | $535,776 | ||||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | $— | ||||||||
(in thousands) | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | |||||||
December 31, 2024 | |||||||||||||||
Commercial and industrial | |||||||||||||||
Risk rating | |||||||||||||||
Pass | $28,334 | $113,024 | $41,271 | $23,098 | $55,675 | $140,905 | $— | $402,307 | |||||||
Special mention | — | — | — | 107 | 789 | — | — | 896 | |||||||
Substandard | — | — | 5 | 166 | 6,665 | 1 | — | 6,837 | |||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||
Total | $28,334 | $113,024 | $41,276 | $23,371 | $63,129 | $140,906 | $— | $410,040 | |||||||
Year-to-date gross charge-offs | $— | $191 | $95 | $2 | $127 | $806 | $— | $1,221 | |||||||
Multifamily | |||||||||||||||
Risk rating | |||||||||||||||
Pass | $183,739 | $383,108 | $777,706 | $690,644 | $736,585 | $21,469 | $— | $2,793,251 | |||||||
Special mention | — | — | — | — | — | — | — | — | |||||||
Substandard | — | — | — | — | 1,330 | — | — | 1,330 | |||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||
Total | $183,739 | $383,108 | $777,706 | $690,644 | $737,915 | $21,469 | $— | $2,794,581 | |||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | |||||||
Non-owner occupied | |||||||||||||||
Risk rating | |||||||||||||||
Pass | $15,127 | $37,938 | $347,939 | $95,368 | $1,082,553 | $42,257 | $— | $1,621,182 | |||||||
Special mention | — | — | — | — | 9,026 | — | — | 9,026 | |||||||
Substandard | — | — | — | — | 27,389 | — | — | 27,389 | |||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||
Total | $15,127 | $37,938 | $347,939 | $95,368 | $1,118,968 | $42,257 | $— | $1,657,597 | |||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | $— | ||||||
Owner-occupied | |||||||||||||||
Risk rating | |||||||||||||||
Pass | $10,840 | $23,340 | $62,849 | $47,056 | $189,436 | $3,357 | $— | $336,878 | |||||||
Special mention | — | — | — | — | 13,111 | — | — | 13,111 | |||||||
Substandard | — | — | — | — | 10,111 | — | — | 10,111 | |||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||
Total | $10,840 | $23,340 | $62,849 | $47,056 | $212,658 | $3,357 | $— | $360,100 | |||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | |||||||
Construction and land development | |||||||||||||||
Risk rating | |||||||||||||||
Pass | $34,891 | $13,515 | $34,985 | $141 | $20,355 | $102 | $— | $103,989 | |||||||
Special mention | — | — | — | — | — | — | — | — | |||||||
Substandard | — | — | — | — | 441 | — | — | 441 | |||||||
Doubtful | — | — | — | — | — | — | — | — | |||||||
Total | $34,891 | $13,515 | $34,985 | $141 | $20,796 | $102 | $— | $104,430 | |||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $— | $— | $— | $— | |||||||
(in thousands) | 2024 | 2023 | 2022 | 2021 | Prior | Revolving Loans Amortized Cost Basis | Revolving Loans Converted to Term | Total | |||||||
December 31, 2024 | |||||||||||||||
Residential real estate | |||||||||||||||
Payment performance | |||||||||||||||
Performing | $235,132 | $97,522 | $456,174 | $608,721 | $810,899 | $69,661 | $— | $2,278,109 | |||||||
Nonperforming | — | — | — | — | 2,037 | 817 | — | 2,854 | |||||||
Total | $235,132 | $97,522 | $456,174 | $608,721 | $812,936 | $70,478 | $— | $2,280,963 | |||||||
Year-to-date gross charge-offs | $— | $— | $— | $— | $10 | $— | $— | $10 | |||||||
Auto | |||||||||||||||
Payment performance | |||||||||||||||
Performing | $— | $81,178 | $831,402 | $497,176 | $180,927 | $— | $— | $1,590,683 | |||||||
Nonperforming | — | 316 | 3,355 | 1,900 | 681 | — | — | 6,252 | |||||||
Total | $— | $81,494 | $834,757 | $499,076 | $181,608 | $— | $— | $1,596,935 | |||||||
Year-to-date gross charge-offs | $— | $2,223 | $29,978 | $16,780 | $6,116 | $— | $— | $55,097 | |||||||
Other consumer | |||||||||||||||
Payment performance | |||||||||||||||
Performing | $167,162 | $136,903 | $71,023 | $22,414 | $38,429 | $2,919 | $— | $438,850 | |||||||
Nonperforming | — | — | — | — | — | 1 | — | $1 | |||||||
Total | $167,162 | $136,903 | $71,023 | $22,414 | $38,429 | $2,920 | $— | $438,851 | |||||||
Year-to-date gross charge-offs | $700 | $— | $— | $950 | $1,521 | $47 | $— | $3,218 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
2025 | 2024 | 2025 | 2024 | ||||
(in thousands) | |||||||
Residential real estate | $3,547 | $36,240 | $46,163 | $91,367 | |||
Auto | — | — | — | 5,407 | |||
Other consumer | 41,718 | 16,519 | 126,133 | 127,126 | |||
Total | $45,265 | $52,759 | $172,296 | $223,900 | |||
(in thousands) | September 30, 2025 | |
Period ending December 31, | ||
2025 | $7,480 | |
2026 | 27,950 | |
2027 | 22,173 | |
2028 | 16,397 | |
2029 | 11,558 | |
Thereafter | 18,657 | |
Total future amortization expense | $104,215 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Tax credits and other tax benefits recognized | $1,012 | $869 | $2,669 | $2,608 | |||
LIHTC amortization expense | 1,294 | 858 | 2,945 | 2,554 | |||
(in thousands) | September 30, 2025 |
Within one year | $3,329,099 |
One to two years | 38,727 |
Two to three years | 8,384 |
Three to four years | 5,355 |
Four to five years | 4,176 |
Thereafter | 1,499 |
Total | $3,387,240 |
September 30, 2025 | December 31, 2024 | ||||||
(in thousands) | Notional amount | Fair Value | Notional amount | Fair Value | |||
Included in interest receivable and other assets: | |||||||
Interest rate lock commitments | $14,385 | $277 | $— | $— | |||
Forward sale commitments | 34,230 | 131 | — | — | |||
Interest rate swaps | 430,236 | 11,347 | 379,696 | 12,835 | |||
Total derivatives before netting | $478,851 | $11,755 | $379,696 | $12,835 | |||
Netting adjustment/cash collateral (1) | (5,741) | — | |||||
Carrying value on consolidated balance sheet | $6,014 | $12,835 | |||||
Included in interest payable and other liabilities: | |||||||
Interest rate lock commitments | $— | $— | $430 | $7 | |||
Forward sale commitments | 30,862 | 112 | 430 | — | |||
Interest rate swaps | 430,236 | 10,259 | 379,696 | 11,056 | |||
Futures | 1,800 | 1 | — | — | |||
Total derivatives before netting | $462,898 | $10,372 | $380,556 | $11,063 | |||
Netting adjustment/cash collateral (1) | 147 | — | |||||
Carrying value on consolidated balance sheet | $10,519 | $11,063 | |||||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Recognized in noninterest income: | |||||||
Net loss on loan origination and sale activities (1) | $(146) | $— | $(146) | $— | |||
Loan servicing income (2) | 78 | — | 78 | — | |||
Other (3) | 21 | 53 | 96 | 93 | |||
(in thousands) | September 30, 2025 | December 31, 2024 | |
Single family | $21,397 | $543 | |
CRE, multifamily and SBA | 33,588 | — | |
Total | $54,985 | $543 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Single family | $35,925 | $342 | $39,234 | $4,029 | |||
CRE, multifamily and SBA | 7,100 | — | 7,100 | — | |||
Total | $43,025 | $342 | $46,334 | $4,029 | |||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Single family (1) | $213 | $— | $213 | $42 | |||
CRE, multifamily and SBA (1) | 446 | — | 446 | — | |||
Total | $659 | $— | $659 | $42 | |||
(in thousands) | September 30, 2025 | December 31, 2024 | |
Single family | $4,453,004 | $196,895 | |
CRE, multifamily and SBA | 1,886,746 | 11,092 | |
Total | $6,339,750 | $207,987 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||
(in thousands) | 2025 | 2025 | |
Balance, beginning of period | $— | $— | |
Reserve liability acquired (1) | 734 | 734 | |
Additions, net of adjustments (2) | 4 | 4 | |
Balance, end of period | $738 | $738 | |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Servicing income, net: | |||||||
Servicing fees and other | $1,873 | $202 | $2,218 | $786 | |||
Changes in fair value of single family MSRs - other (1) | (618) | — | (618) | — | |||
Amortization of multifamily and SBA MSRs | (585) | — | (585) | — | |||
Total | 670 | 202 | 1,015 | 786 | |||
Risk management, single family MSRs: | |||||||
Changes in fair value of MSRs due to assumptions (2) | (167) | — | (167) | — | |||
Net gain from economic hedging (3) | 177 | — | 177 | — | |||
Total | 10 | — | 10 | — | |||
Loan servicing income | $680 | $202 | $1,025 | $786 | |||
Quarter Ended September 30, | Nine Months Ended September 30, | ||
(in thousands) | 2025 | 2025 | |
Beginning balance | $— | $— | |
Additions: | |||
MSRs acquired (1) | 60,166 | 60,166 | |
Originations | 155 | 155 | |
Net additions | 60,321 | 60,321 | |
Changes in fair value: | |||
Changes in fair value assumptions (2) | (167) | (167) | |
Other (3) | (618) | (618) | |
Ending balance | $59,536 | $59,536 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||
(rates per annum) (1) | 2025 | 2025 | |
Constant prepayment rate (CPR) (2) | 16.47% | 16.47% | |
Discount rate | 8.73% | 8.73% |
(dollars in thousands) | September 30, 2025 |
Fair value of single family MSRs | $59,536 |
Expected weighted-average life (in years) | 8.19 |
CPR | |
Impact on fair value of 25 basis points adverse change in interest rates | $(980) |
Impact on fair value of 50 basis points adverse change in interest rates | $(1,989) |
Discount rate | |
Impact on fair value of 100 basis points increase | $(2,585) |
Impact on fair value of 200 basis points increase | $(5,050) |
Quarter Ended September 30, | Nine Months Ended September 30, | ||
(in thousands) | 2025 | 2025 | |
Beginning balance | $— | $— | |
MSRs acquired (1) | 29,538 | 29,538 | |
Originations | 106 | 106 | |
Amortization | (585) | (585) | |
Ending balance | $29,059 | $29,059 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||
(rates per annum) (1) | 2025 | 2025 | |
Discount rate | 13.00% | 13.00% |
September 30, 2025 | |||
Range of Inputs | Average (1) | ||
Discount Rates | 13.00% - 15.00% | 13.00% | |
Asset/Liability class | Valuation methodology, inputs and assumptions | Classification | ||
Investment securities | ||||
U.S Treasury securities (Trading securities and Investment securities AFS) | Fair Value is based on quoted prices in an active market. | Level 1 recurring fair value measurement. | ||
Investment securities AFS | Observable market prices of identical or similar securities are used where available. | Level 2 recurring fair value measurement. | ||
If market prices are not readily available, value is based on discounted cash flows using the following significant inputs: •Expected prepayment speeds •Estimated credit losses •Market liquidity adjustments | Level 3 recurring fair value measurement. | |||
LHFS | ||||
Single family loans | Fair value is based on observable market data, including: •Quoted market prices, where available •Dealer quotes for similar loans •Forward sale commitments | Level 2 recurring fair value measurement. | ||
Equity securities | Observable market prices of identical or similar securities are used where available. | Level 2 recurring fair value measurement. | ||
Mortgage servicing rights | ||||
Single family MSRs | For information on how the Company measures the fair value of its single family MSRs, including key economic assumptions and the sensitivity of fair value to changes in those assumptions, see Note 11, “Mortgage Banking Operations.” | Level 3 recurring fair value measurement. | ||
Derivatives | ||||
Futures and Options | Fair value is based on closing exchange prices. | Level 1 recurring fair value measurement. | ||
Forward sale commitments and interest rate swaps | Fair value is based on quoted prices for identical or similar instruments, when available. When quoted prices are not available, fair value is based on internally developed modeling techniques, which require the use of multiple observable market inputs including: •Forward interest rates •Interest rate volatilities | Level 2 recurring fair value measurement. | ||
IRLC | The fair value considers several factors including: •Fair value of the underlying loan based on quoted prices in the secondary market, when available. •Value of servicing •Fall-out factor | Level 3 recurring fair value measurement. |
September 30, 2025 | |||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||
Assets: | |||||||
Trading securities - U.S. Treasury securities | $50,357 | $50,357 | $— | $— | |||
Securities available-for-sale: | |||||||
Obligations of states and political subdivisions | 467,870 | — | 467,870 | — | |||
Mortgage backed securities - residential | 2,374,155 | — | 2,372,543 | 1,612 | |||
Mortgage backed securities - commercial | 378,178 | — | 378,178 | — | |||
Collateralized loan obligations | 188,689 | — | 188,689 | — | |||
Corporate bonds | 53,484 | — | 53,437 | 47 | |||
U.S. Treasury securities | 20,579 | 20,579 | — | — | |||
Agency debentures | 7,523 | — | 7,523 | — | |||
Total securities available-for-sale | 3,490,478 | 20,579 | 3,468,240 | 1,659 | |||
Single family LHFS | 21,397 | — | 21,397 | — | |||
Single family mortgage servicing rights | 59,536 | — | — | 59,536 | |||
Equity securities | 16,018 | — | 16,018 | — | |||
Derivatives: | |||||||
Forward loan sale commitments | 131 | — | 131 | — | |||
Interest rate lock commitments | 277 | — | — | 277 | |||
Interest rate swaps | 11,347 | — | 11,347 | — | |||
Total assets | $3,649,541 | $70,936 | $3,517,133 | $61,472 | |||
Liabilities: | |||||||
Derivatives: | |||||||
Forward loan sale commitments | $112 | $— | $112 | $— | |||
Interest rate swaps | 10,259 | — | 10,259 | — | |||
Futures | 1 | 1 | — | — | |||
Total liabilities | $10,372 | $1 | $10,371 | $— | |||
December 31, 2024 | |||||||
(in thousands) | Fair Value | Level 1 | Level 2 | Level 3 | |||
Assets: | |||||||
Securities available-for-sale: | |||||||
Obligations of states and political subdivisions | $91,299 | $— | $91,299 | $— | |||
Mortgage backed securities - residential | 2,643,688 | — | 2,643,688 | — | |||
Mortgage backed securities - commercial | 240,862 | — | 240,862 | — | |||
Collateralized loan obligations | 50,000 | — | 50,000 | — | |||
Corporate bonds | 39,402 | — | 39,402 | — | |||
Total securities available-for-sale | 3,065,251 | — | 3,065,251 | — | |||
Equity securities | 15,355 | — | 15,355 | — | |||
Derivatives: | |||||||
Interest rate swaps | 12,835 | — | 12,835 | ||||
Total assets | $3,093,441 | $— | $3,093,441 | $— | |||
Liabilities: | |||||||
Derivatives: | |||||||
Interest rate swaps | $11,056 | $— | $11,056 | $— | |||
Interest rate lock commitments | 7 | — | — | 7 | |||
Total liabilities | $11,063 | $— | $11,056 | $7 | |||
(dollars in thousands) | Fair Value | Valuation Technique | Significant Unobservable Inputs | Low | High | Weighted Average | |||||
September 30, 2025 | |||||||||||
Investment securities AFS | $1,659 | Income approach | Implied spread to benchmark interest rate curve | 2.25% | 2.25% | 2.25% | |||||
Interest rate lock commitments, net | 277 | Income approach | Fall-out factor | 1.10% | 24.54% | 15.04% | |||||
Value of servicing | 0.64% | 1.49% | 1.18% |
(in thousands) | Beginning balance | Additions (1) | Transfers | Payoffs/Sales | Change in mark to market | Ending balance | |||||
Quarter Ended September 30, 2025 | |||||||||||
Investment securities AFS | $— | $1,649 | $— | $— | $10 | $1,659 | |||||
Nine Months Ended September 30, 2025 | |||||||||||
Investment securities AFS | $— | $1,649 | $— | $— | $10 | $1,659 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||
(in thousands) | 2025 | 2025 | |
Beginning balance, net | $— | $— | |
IRLC acquired (1) | 514 | 514 | |
Total realized/unrealized gains | (97) | (97) | |
Settlements | (140) | (140) | |
Ending balance, net | $277 | $277 |
(in thousands) | September 30, 2025 | December 31, 2024 | |
Fair value: | |||
Other real estate owned | $1,675 | $15,600 |
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Losses due to write downs: | |||||||
Other real estate owned (1) | $— | $— | $— | $1,200 | |||
September 30, 2025 | |||||||||
Fair Value | |||||||||
(in thousands) | Carrying Value | Total | Level 1 | Level 2 | Level 3 | ||||
Assets: | |||||||||
Cash and cash equivalents | $1,442,647 | $1,442,647 | $1,442,647 | $— | $— | ||||
Securities held-to-maturity | 1,363,636 | 1,186,260 | — | 1,183,260 | 3,000 | ||||
Loans held for sale - multifamily and other | 33,588 | 33,655 | — | 33,655 | — | ||||
Loan and lease receivables, net | 14,399,836 | 13,948,529 | — | — | 13,948,529 | ||||
Mortgage servicing rights – multifamily and SBA | 29,059 | 29,213 | — | — | 29,213 | ||||
Liabilities: | |||||||||
Time deposits | $3,387,240 | $3,378,332 | $— | $3,378,332 | $— | ||||
Long-term debt | 190,123 | 198,516 | — | 198,516 | — | ||||
December 31, 2024 | |||||||||
Carrying Value | Fair Value | ||||||||
(in thousands) | Total | Level 1 | Level 2 | Level 3 | |||||
Assets: | |||||||||
Cash and cash equivalents | $999,711 | $999,711 | $999,711 | $— | $— | ||||
Securities held-to-maturity | 1,440,494 | 1,196,000 | — | 1,193,000 | 3,000 | ||||
Loans held for sale - single family | 543 | 543 | 543 | ||||||
Loan and lease receivables, net | 9,554,939 | 8,817,007 | — | — | 8,817,007 | ||||
Liabilities: | |||||||||
Time deposits | $970,053 | $960,276 | $— | $960,276 | $— | ||||
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||
(in thousands) | 2025 | 2024 | 2025 | 2024 | |||
Noninterest income in scope of ASC 606: | |||||||
Service charges on deposit accounts | $5,875 | $6,007 | $16,861 | $17,854 | |||
Trust fees and commissions | 3,117 | 3,176 | 9,452 | 8,841 | |||
ATM network fee income | 3,425 | 3,109 | 9,353 | 9,084 | |||
Noninterest income subject to ASC 606 | 12,417 | 12,292 | 35,666 | 35,779 | |||
Noninterest income (loss) not subject to ASC 606 | 97,361 | 4,612 | 108,718 | (193,434) | |||
Total noninterest income (loss) | $109,778 | $16,904 | $144,384 | $(157,655) | |||
Quarter Ended September 30, | Quarter Ended September 30, | ||||||||||
2025 | 2024 | ||||||||||
(in thousands, except share and per share data) | Class A common stock | Class B common stock | Consolidated | Class A common stock | Class B common stock | Consolidated | |||||
Net income | $55,161 | $39,944 | |||||||||
Basic: | |||||||||||
Numerator | |||||||||||
Allocation of distributed earnings (cash dividends declared) | $— | $— | $— | $28,419 | $1,577 | $29,996 | |||||
Allocation of undistributed earnings | 52,345 | 2,816 | 55,161 | 9,425 | 523 | 9,948 | |||||
Allocation of distributed and undistributed earnings | $52,345 | $2,816 | $55,161 | $37,844 | $2,100 | $39,944 | |||||
Denominator | |||||||||||
Basic weighted average common shares outstanding | 207,189,764 | 1,114,448 | 208,304,212 | 200,884,880 | 1,114,448 | 201,999,328 | |||||
Basic earnings per share (1) | $0.25 | $2.53 | $0.26 | $0.19 | $1.88 | $0.20 | |||||
Diluted: | |||||||||||
Numerator | |||||||||||
Allocation of distributed and undistributed earnings | $52,345 | $2,816 | $55,161 | $37,844 | $2,100 | $39,944 | |||||
Denominator | |||||||||||
Basic weighted average common shares outstanding | 207,189,764 | 1,114,448 | 208,304,212 | 200,884,880 | 1,114,448 | 201,999,328 | |||||
Dilutive effect of unvested restricted stock units | 68,914 | — | 68,914 | 92,431 | — | 92,431 | |||||
Diluted weighted average common shares outstanding | 207,258,678 | 1,114,448 | 208,373,126 | 200,977,311 | 1,114,448 | 202,091,759 | |||||
Diluted earnings per share (1) | $0.25 | $2.53 | $0.26 | $0.19 | $1.88 | $0.20 | |||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2025 | 2024 | ||||||||||
(in thousands, except share and per share data) | Class A common stock | Class B common stock | Consolidated | Class A common stock | Class B common stock | Consolidated | |||||
Net income (loss) | $141,437 | $(22,664) | |||||||||
Basic: | |||||||||||
Numerator | |||||||||||
Allocation of distributed earnings (cash dividends declared) | $— | $— | $— | $89,999 | $4,993 | $94,992 | |||||
Allocation of undistributed earnings (losses) | 134,077 | 7,360 | 141,437 | (111,472) | (6,184) | (117,656) | |||||
Allocation of distributed and undistributed earnings (losses) | $134,077 | $7,360 | $141,437 | $(21,473) | $(1,191) | $(22,664) | |||||
Denominator | |||||||||||
Basic weighted average common shares outstanding | 203,012,384 | 1,114,448 | 204,126,832 | 200,876,688 | 1,114,448 | 201,991,136 | |||||
Basic earnings (loss) per share (1) | $0.66 | $6.60 | $0.69 | $(0.11) | $(1.07) | $(0.11) | |||||
Diluted: | |||||||||||
Numerator | |||||||||||
Allocation of distributed and undistributed earnings (losses) | $134,077 | $7,360 | $141,437 | $(21,473) | $(1,191) | $(22,664) | |||||
Denominator | |||||||||||
Basic weighted average common shares outstanding | 203,012,384 | 1,114,448 | 204,126,832 | 200,876,688 | 1,114,448 | 201,991,136 | |||||
Dilutive effect of unvested restricted stock units (2) | 62,619 | — | 62,619 | — | — | — | |||||
Diluted weighted average common shares outstanding | 203,075,003 | 1,114,448 | 204,189,451 | 200,876,688 | 1,114,448 | 201,991,136 | |||||
Diluted earnings per share (1) | $0.66 | $6.60 | $0.69 | $(0.11) | $(1.07) | $(0.11) | |||||
Quarter Ended | Nine Months Ended | ||||||
(in thousands, except shares, per share and FTE data) | September 30 2025 | June 30 2025 | September 30 2025 | September 30 2024 | |||
Select Income Statement data: | |||||||
Net interest income | $145,670 | $130,129 | $404,253 | $390,769 | |||
Provision for credit losses on loans and leases | 46,058 | 357 | 42,663 | 2,684 | |||
Provision (reversal of provision) for credit losses on unfunded lending commitments | 960 | (725) | 329 | 517 | |||
Noninterest income (loss) | 109,778 | 19,625 | 144,384 | (157,655) | |||
Noninterest expense | 163,329 | 91,080 | 340,047 | 261,410 | |||
Net income (loss): | |||||||
Before income tax expense | 45,101 | 59,042 | 165,598 | (31,497) | |||
Total | 55,161 | 42,485 | 141,437 | (22,664) | |||
Basic earnings per share: | |||||||
Class A common stock | $0.25 | $0.20 | $0.66 | $(0.11) | |||
Class B common stock | $2.53 | $2.00 | $6.60 | $(1.07) | |||
Diluted earnings per share: | |||||||
Class A common stock | $0.25 | $0.20 | $0.66 | $(0.11) | |||
Class B common stock | $2.53 | $2.00 | $6.60 | $(1.07) | |||
Basic weighted-average shares outstanding | |||||||
Class A common stock | 207,189,764 | 200,893,223 | 203,012,384 | 200,876,688 | |||
Class B common stock | 1,114,448 | 1,114,448 | 1,114,448 | 1,114,448 | |||
Diluted weighted-average shares outstanding | |||||||
Class A common stock | 207,258,678 | 200,952,643 | 203,075,003 | 200,876,688 | |||
Class B common stock | 1,114,448 | 1,114,448 | 1,114,448 | 1,114,448 | |||
Select Performance Ratios: | |||||||
Return on average equity (1) | 8.61% | 7.15% | 7.81% | (1.35)% | |||
Return on average tangible equity (1),(2) | 14.17% | 11.82% | 12.96% | (1.48)% | |||
Return on average assets (1) | 1.18% | 1.03% | 1.10% | (0.18)% | |||
Efficiency ratio | 63.9% | 60.8% | 62.0% | 112.1% | |||
Efficiency ratio (non-GAAP) (2) | 62.3% | 59.0% | 60.2% | 107.6% | |||
Net interest margin (1) | 3.36% | 3.44% | 3.41% | 3.29% | |||
As of | |||
(in thousands, except shares, per share and FTE data) | September 30, 2025 | December 31, 2024 | |
Selected Balance Sheet Data | |||
Loans held for sale | $54,985 | $543 | |
Loans held for investment | 14,568,795 | 9,643,497 | |
Allowance for credit losses | (168,959) | (88,558) | |
Investment securities | 4,854,114 | 4,505,745 | |
Total assets | 22,708,820 | 16,490,112 | |
Total deposits | 19,452,819 | 13,941,804 | |
Total long-term debt | 190,123 | — | |
Total shareholders’ equity | 2,774,134 | 2,301,868 | |
Other data: | |||
Book value per share | $12.54 | $11.40 | |
Tangible book value per share (2) | $7.73 | $6.70 | |
Common equity ratio | 12.22% | 13.96% | |
Tangible common equity ratio (2) | 8.23% | 9.10% | |
Loans to deposits ratio | 74.89% | 69.17% | |
Full time equivalent employees | 2,036 | 1,439 | |
Credit Quality: | |||
Nonaccrual loans | $60,586 | $10,693 | |
Nonperforming assets to total assets | 0.29% | 0.16% | |
ACL to total loans | 1.16% | 0.92% | |
ACL to nonaccrual loans | 278.88% | 828.22% | |
Nonaccrual loans to total loans | 0.42% | 0.11% | |
Nonperforming assets | $64,914 | $26,504 | |
Regulatory Capital Ratios:(3) | |||
Mechanics Bancorp | |||
Tier 1 leverage capital | 10.34% | n/a | |
Common equity Tier 1 capital | 13.42% | n/a | |
Tier 1 risk-based capital | 13.42% | n/a | |
Total risk based capital | 15.57% | n/a | |
Mechanics Bank | |||
Tier 1 leverage capital | 11.46% | 9.66% | |
Common equity Tier 1 capital | 14.87% | 16.14% | |
Tier 1 risk-based capital | 14.87% | 16.14% | |
Total risk based capital | 16.13% | 17.14% | |
Quarter Ended | |||
(in thousands) | September 30, 2025 | June 30, 2025 | |
Noninterest income | |||
Service charges on deposit accounts | $5,875 | $5,492 | |
Trust fees and commissions | 3,117 | 3,216 | |
ATM network fee income | 3,425 | 3,040 | |
Loan servicing income | 680 | 168 | |
Net gain (loss) on sales and calls of investment securities | 155 | 4,137 | |
Income from bank-owned life insurance | 2,120 | 502 | |
Bargain purchase gain | 90,363 | — | |
Other | 4,043 | 3,070 | |
Total noninterest income | $109,778 | $19,625 | |
Quarter Ended | |||
(in thousands) | September 30, 2025 | June 30, 2025 | |
Single family servicing income, net | |||
Servicing fees and other | $1,059 | $168 | |
Changes in fair value of single family MSRs - other (1) | (618) | — | |
Net | 441 | 168 | |
Risk management, single family MSRs: | |||
Changes in fair value due to assumptions (2) | (167) | — | |
Net gain from economic hedging (3) | 177 | — | |
Subtotal | 10 | — | |
Single family servicing income | 451 | 168 | |
Commercial loan servicing income: | |||
Servicing fees and other | 814 | — | |
Amortization of capitalized MSRs | (585) | — | |
Subtotal | 229 | — | |
Total loan servicing income | $680 | $168 | |
Quarter Ended | |||
(in thousands) | September 30, 2025 | June 30, 2025 | |
Noninterest expense | |||
Salaries and employee benefits | $54,168 | $47,734 | |
Occupancy | 9,566 | 8,337 | |
Equipment | 7,288 | 6,288 | |
Professional services | 5,560 | 5,907 | |
FDIC assessments and regulatory fees | 2,722 | 2,213 | |
Amortization of intangible assets | 4,251 | 2,666 | |
Data processing | 3,315 | 2,200 | |
Loan related | 4,439 | 3,220 | |
Marketing and advertising | 680 | 744 | |
Other real estate owned related | (103) | 104 | |
Acquisition and integration costs | 63,869 | 5,639 | |
Other | 7,574 | 6,028 | |
Total noninterest expense | $163,329 | $91,080 | |
Nine Months Ended September 30, | |||
(in thousands) | 2025 | 2024 | |
Noninterest income (loss) | |||
Service charges on deposit accounts | $16,861 | $17,854 | |
Trust fees and commissions | 9,452 | 8,841 | |
ATM network fee income | 9,353 | 9,084 | |
Loan servicing income | 1,025 | 786 | |
Net gain (loss) on sales and calls of investment securities | 4,292 | (207,203) | |
Income from bank-owned life insurance | 3,149 | 2,144 | |
Bargain purchase gain | 90,363 | — | |
Other | 9,889 | 10,839 | |
Total noninterest income (loss) | $144,384 | $(157,655) | |
Nine Months Ended September 30, | |||
(in thousands) | 2025 | 2024 | |
Single family servicing income, net | |||
Servicing fees and other | $1,404 | $786 | |
Changes in fair value of single family MSRs - other(1) | (618) | — | |
Net | 786 | 786 | |
Risk management, single family MSRs: | |||
Changes in fair value due to assumptions (2) | (167) | — | |
Net gain from economic hedging (3) | 177 | — | |
Subtotal | 10 | — | |
Single family servicing income | 796 | 786 | |
Commercial loan servicing income: | |||
Servicing fees and other | 814 | — | |
Amortization of capitalized MSRs | (585) | — | |
Subtotal | 229 | — | |
Total loan servicing income | $1,025 | $786 | |
Nine Months Ended September 30, | |||
(in thousands) | 2025 | 2024 | |
Noninterest expense | |||
Salaries and employee benefits | $150,753 | $147,717 | |
Occupancy | 25,875 | 24,113 | |
Equipment | 19,445 | 17,643 | |
Professional services | 16,383 | 15,398 | |
FDIC assessments and regulatory fees | 7,148 | 8,679 | |
Amortization of intangible assets | 9,655 | 10,705 | |
Data processing | 6,865 | 6,734 | |
Loan related | 9,236 | 5,416 | |
Marketing and advertising | 2,008 | 2,603 | |
Other real estate owned related | 2,685 | 1,888 | |
Acquisition and integration costs | 69,858 | — | |
Other | 20,136 | 20,514 | |
Total noninterest expense | $340,047 | $261,410 | |
September 30, 2025 | December 31, 2024 | ||||||
(in thousands) | Amortized Cost | Fair Value | Amortized Cost | Fair Value | |||
Securities available-for-sale | |||||||
Obligations of states and political subdivisions | $459,834 | $467,870 | 91,799 | 91,299 | |||
Mortgage-backed securities - residential | 2,373,146 | 2,374,155 | 2,694,745 | 2,643,688 | |||
Mortgage-backed securities - commercial | 389,469 | 378,178 | 259,793 | 240,862 | |||
Collateralized loan obligations | 188,500 | 188,689 | 50,000 | 50,000 | |||
Corporate bonds | 56,558 | 53,484 | 43,968 | 39,402 | |||
U.S. Treasury securities | 20,597 | 20,579 | — | — | |||
Agency debentures | 7,545 | 7,523 | — | — | |||
Total securities available-for-sale | 3,495,649 | 3,490,478 | 3,140,305 | 3,065,251 | |||
Securities held-to-maturity | |||||||
Obligations of states and political subdivisions | 15,082 | 15,576 | 14,193 | 14,672 | |||
Mortgage-backed securities - residential | 1,037,566 | 893,069 | 1,115,389 | 918,440 | |||
Mortgage-backed securities - commercial | 310,988 | 277,615 | 310,912 | 262,888 | |||
Total securities held-to-maturity | 1,363,636 | 1,186,260 | 1,440,494 | 1,196,000 | |||
Total AFS and HTM debt securities | $4,859,285 | $4,676,738 | $4,580,799 | $4,261,251 | |||
September 30, 2025 | |||||||||||||||||||
One Year Or Less | More than One to Five Years | More than Five Years to Ten Years | More than Ten Years | Total | |||||||||||||||
(in thousands) | Amount | Weighted Average Yield (1) | Amount | Weighted Average Yield (1) | Amount | Weighted Average Yield (1) | Amount | Weighted Average Yield (1) | Amount | Weighted Average Yield (1) | |||||||||
Securities available-for-sale | |||||||||||||||||||
Obligations of states and political subdivisions | $345 | 2.49% | $45,276 | 1.82% | $90,330 | 3.65% | $331,919 | 4.29% | $467,870 | 3.92% | |||||||||
Mortgage-backed securities - residential | 446 | 2.02% | 16,887 | 2.06% | 26,601 | 2.31% | 2,330,221 | 5.03% | 2,374,155 | 4.97% | |||||||||
Mortgage-backed securities - commercial | 2,460 | 6.30% | 190,384 | 3.21% | 158,333 | 4.58% | 27,001 | 3.66% | 378,178 | 3.82% | |||||||||
Collateralized loan obligations | — | —% | — | —% | — | —% | 188,689 | 5.70% | 188,689 | 5.70% | |||||||||
Corporate bonds | — | —% | 3,388 | 24.61% | 50,096 | 4.47% | — | —% | 53,484 | 5.72% | |||||||||
U.S. Treasury securities | — | —% | 20,579 | 3.60% | — | —% | — | —% | 20,579 | —% | |||||||||
Agency debentures | — | —% | 1,384 | 3.81% | 3,942 | 4.43% | 2,197 | 4.82% | 7,523 | 4.43% | |||||||||
Total securities available-for-sale | 3,251 | 5.31% | 277,898 | 3.21% | 329,302 | 3.38% | 2,880,027 | 5.19% | 3,490,478 | 4.75% | |||||||||
Securities held-to-maturity | |||||||||||||||||||
Obligations of states and political subdivisions | 5,244 | 1.10% | 3,592 | 4.23% | 4,621 | 4.35% | 1,625 | 7.44% | 15,082 | 3.52% | |||||||||
Mortgage-backed securities - residential | — | —% | 58 | 2.46% | — | —% | 1,037,508 | 1.78% | 1,037,566 | 1.78% | |||||||||
Mortgage-backed securities - commercial | — | —% | 139,756 | 1.74% | 171,232 | 1.83% | — | —% | 310,988 | 1.79% | |||||||||
Total securities held-to- maturity | 5,244 | 1.10% | 143,406 | 0.92% | 175,853 | 2.27% | 1,039,133 | 1.79% | 1,363,636 | 1.80% | |||||||||
Total AFS and HTM debt securities | $8,495 | 2.71% | $421,304 | 2.80% | $505,155 | 3.32% | $3,919,160 | 4.13% | $4,854,114 | 3.92% | |||||||||
(in thousands) | September 30, 2025 | December 31, 2024 | |
Commercial and industrial | $547,311 | $410,040 | |
Commercial real estate | |||
Multifamily | 5,448,374 | 2,794,581 | |
Non-owner occupied | 1,864,040 | 1,657,597 | |
Owner occupied | 709,239 | 360,100 | |
Construction and land development | 535,776 | 104,430 | |
Residential real estate | 3,907,101 | 2,280,963 | |
Auto | 954,615 | 1,596,935 | |
Other consumer | 602,339 | 438,851 | |
Total LHFI | 14,568,795 | 9,643,497 | |
ACL | (168,959) | (88,558) | |
Total LHFI less ACL | $14,399,836 | $9,554,939 |
Nine Months Ended | |||
(in thousands) | September 30, 2025 | September 30, 2024 | |
Commercial and industrial | $235,338 | $297,389 | |
Commercial real estate | |||
Multifamily | 86,028 | 181,903 | |
Non-owner occupied | 8,158 | 33,980 | |
Owner occupied | 22,649 | 20,047 | |
Construction and land development | 114,369 | 45,815 | |
Residential real estate | 437,967 | 97,071 | |
Other consumer | 188,479 | 116,605 | |
Total | $1,092,988 | $792,810 | |
September 30, 2025 | December 31, 2024 | ||||||
(in thousands) | Amount | Weighted Average Rate | Amount | Weighted Average Rate | |||
Deposits by product: | |||||||
Noninterest-bearing demand deposits | $6,748,479 | —% | $5,616,116 | —% | |||
Interest-bearing: | |||||||
Interest-bearing demand deposits | 1,733,215 | 0.37% | 1,435,266 | 0.43% | |||
Savings | 1,398,430 | 0.03% | 1,216,900 | 0.02% | |||
Money market | 6,185,455 | 2.76% | 4,703,643 | 3.15% | |||
Certificates of deposit | 3,387,240 | 3.43% | 969,879 | 2.55% | |||
Total interest-bearing deposits | 12,704,340 | 2.31% | 8,325,688 | 2.15% | |||
Total deposits | 19,452,819 | 1.51% | 13,941,804 | 1.29% | |||
Uninsured deposits | $6,630,809 | $6,153,395 | |||||
(in thousands) | Three Months or Less | Over Three Months through Six Months | Over Six Months through Twelve Months | Over Twelve Months | Total | ||||
Time deposits of $250 thousand or less | $1,445,798 | 1,090,021 | $154,111 | $48,833 | $2,738,763 | ||||
Time deposits greater than $250 thousand | 337,383 | 271,012 | 30,774 | 9,308 | 648,477 | ||||
Total | $1,783,181 | $1,361,033 | $184,885 | $58,141 | $3,387,240 |
(dollars in thousands) | September 30, 2025 | December 31, 2024 | |
Delinquent loans held for investment: | |||
30-89 days past due | $55,883 | $91,337 | |
90+ days past due | 38,316 | 6,082 | |
Total delinquent loans | $94,199 | $97,419 | |
Total delinquent loans to loans held for investment | 0.65% | 1.01% | |
Nonperforming assets | |||
Nonaccrual loans | $60,586 | $10,693 | |
90+ days past due and accruing | 2,653 | 211 | |
Total nonperforming loans | 63,239 | 10,904 | |
Foreclosed assets | 1,675 | 15,600 | |
Total nonperforming assets | $64,914 | $26,504 | |
Allowance for credit losses on loans and leases | $168,959 | $88,558 | |
Allowance for credit losses on loans and leases to total loans and leases held for investment | 1.16% | 0.92% | |
Allowance for credit losses on loans and leases to nonaccrual loans | 278.88% | 828.22% | |
Nonaccrual loans to total loans and leases held for investment | 0.42% | 0.11% | |
Nonperforming assets to total assets | 0.29% | 0.16% | |
September 30, 2025 | December 31, 2024 | ||||||
(in thousands) | Balance | Loan balance % to total loans | Balance | Loan balance % to total loans | |||
Commercial and industrial | $23,244 | 3.8% | $4,869 | 4.2% | |||
Commercial real estate | 101,063 | 58.8% | 35,097 | 51.0% | |||
Residential real estate | 22,193 | 26.8% | 4,656 | 23.6% | |||
Auto | 19,733 | 6.5% | 41,282 | 16.6% | |||
Other consumer | 2,726 | 4.1% | 2,654 | 4.6% | |||
Total ACL | $168,959 | 100.0% | $88,558 | 100.0% | |||
(in thousands) | September 30, 2025 | December 31, 2024 | |
Unused consumer portfolio lines | $844,593 | $224,812 | |
Commercial portfolio lines (1) | 1,413,844 | 906,123 | |
Commitments to fund loans | 34,299 | 2,765 | |
Total | $2,292,736 | $1,133,700 | |
Standby letters of credit | $26,622 | $19,227 |
Exhibit Number | Description | |
10.1 * | ||
10.2 * | ||
31.1 * | ||
31.2 * | ||
32.1 (1) * | ||
32.2 (1) * | ||
101 INS | Inline XBRL Instance Document | |
101.SCH * | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL * | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF * | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.LAB * | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
101.PRE * | Inline XBRL Taxonomy Extension Definitions Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Mechanics Bancorp | ||
By: | /s/ C.J. Johnson | |
C.J. Johnson | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Mechanics Bancorp | ||
By: | /s/ Nathan Duda | |
Nathan Duda | ||
Executive Vice President and Chief Financial Officer | ||
(Principal Financial Officer) | ||
| Mechanics Bank | |||||
| By: | /s/ JOHN DECERO | ||||
| John DeCero | |||||
| Chief Executive Officer | |||||
| GJF Financial Management II, LLC | |||||
| By: | /s/ GERALD J. FORD | ||||
| Gerald J. Ford | |||||
| Member | |||||
| Dated: | November 17, 2025 | By: | /s/ C.J. Johnson | ||||||||
| C.J. Johnson | |||||||||||
| President and Chief Executive Officer | |||||||||||
| Dated: | November 17, 2025 | By: | /s/ Nathan Duda | ||||||||
| Nathan Duda | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||
| Dated: | November 17, 2025 | By: | /s/ C.J. Johnson | ||||||||
| C.J. Johnson | |||||||||||
| President and Chief Executive Officer | |||||||||||
| Dated: | November 17, 2025 | By: | /s/ Nathan Duda | ||||||||
| Nathan Duda | |||||||||||
| Executive Vice President and Chief Financial Officer | |||||||||||