{"id":47082,"date":"2026-07-29T14:45:00","date_gmt":"2026-07-29T12:45:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=c7bb54b18abe85ec5bbd8cca51937753"},"modified":"2026-07-29T14:45:00","modified_gmt":"2026-07-29T12:45:00","slug":"mechanics-bancorp-reports-second-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=47082","title":{"rendered":"Mechanics Bancorp Reports Second Quarter 2026 Results"},"content":{"rendered":"

\n\u00a0<\/p>

WALNUT CREEK, Calif.--(BUSINESS WIRE)--Mechanics Bancorp (NASDAQ: MCHB):<\/p>\n\n\n

\nSecond Quarter Highlights<\/b><\/p><\/td><\/tr>\n

\n$21.2 billion<\/b><\/p>

\nTotal Assets<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n$57.7 million<\/b><\/p>

\nNet Income<\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n14.39%<\/b><\/p>

\nCET1 Ratio (1)<\/sup><\/b><\/p><\/td>

\n\u00a0<\/p><\/td>

\n$12.15<\/b><\/p>

\nBook Value Per Share<\/b><\/p>

\n$7.56<\/b><\/p>

\nTangible Book Value Per Share (2)<\/sup><\/b><\/p><\/td><\/tr>\n<\/table>

\nMechanics Bancorp (Nasdaq: MCHB) (\u201cMechanics\u201d or the \u201cCompany\u201d), the financial holding company of Mechanics Bank, today announced its financial results for the quarter ended June 30, 2026. Mechanics reported net income of $57.7 million, or $0.25 per diluted share (3)<\/sup>, for the second quarter of 2026, compared to $44.1 million, or $0.19 per diluted share, for the first quarter of 2026. For the six months ended June 30, 2026, Mechanics reported net income of $101.8 million, or $0.44 per diluted share, compared to $86.3 million, or $0.41 per diluted share, for the six months ended June 30, 2025.<\/p>

\nSecond Quarter 2026 Highlights:<\/b><\/p>

    \n
  • \nTotal assets<\/b> of $21.2 billion at June 30, 2026, compared with $21.4 billion at March 31, 2026.<\/li>\n
  • \nTotal loans<\/b> of $13.6 billion at June 30, 2026, compared with $13.9 billion at March 31, 2026.<\/li>\n
  • \nLoans-to-deposits ratio<\/b> of 75% at June 30, 2026, compared with 76% at March 31, 2026.<\/li>\n
  • \nTotal deposits<\/b> of $18.1 billion at June 30, 2026, compared with $18.2 billion at March 31, 2026, and noninterest-bearing deposits of $6.4 billion at June 30, 2026, compared with $6.5 billion at March 31, 2026.<\/li>\n
  • \nTotal cost of deposits<\/b> was 1.25% for the second quarter of 2026 and 1.28% for the first quarter of 2026.<\/li>\n
  • \nDividends<\/b> paid in the second quarter of 2026 were $0.70 per share of Class A common stock and $7.00 per share of Class B common stock.<\/li>\n
  • \nStrong capital ratios<\/b> (1)<\/sup>, including an estimated 16.70% Total risk-based capital ratio, 14.39% Tier 1 capital ratio, 14.39% CET1 capital ratio and 8.71% Tier 1 leverage ratio at June 30, 2026.<\/li>\n
  • \nAllowance for credit losses (\u201cACL\u201d) to total loans of <\/b>1.12%, down from 1.13% at the prior quarter-end.<\/li>\n
  • \nNon-recurring acquisition and integration costs<\/b> of $5.9 million for the second quarter of 2026, compared to $4.8 million in the prior quarter.<\/li>\n<\/ul>\n\n\n\n

    \n(1)<\/p><\/td>

    		\u00a0<\/td>\n

    \nRegulatory capital ratios at June 30, 2026 are preliminary.<\/p><\/td><\/tr>\n

    \n(2)<\/p><\/td>

    		\u00a0<\/td>\n

    \nNon-GAAP measure. Refer to section \u201cNon-GAAP Financial Measures and Reconciliations\u201d below.<\/p><\/td><\/tr>\n

    \n(3)<\/p><\/td>

    		\u00a0<\/td>\n

    \nUnless otherwise specified, refers to diluted earnings per share for Class A common stock.<\/p><\/td><\/tr>\n<\/table>

    \nC.J. Johnson, President and CEO of Mechanics, said, \u201cWe had a strong second quarter financially and substantially completed our merger with HomeStreet. We also successfully sold our Fannie Mae DUS business line and paid $162 million in cash dividends during the quarter. Our merger was an unqualified success and I am very grateful to our employees for a job well-done on the integration. I look forward to getting back to \u201cbusiness as usual\u201d and believe Mechanics is well-positioned for future growth.\u201d<\/p>

    \nNathan Duda, CFO of Mechanics, added, \u201cOur second quarter results demonstrated the underlying earnings power of the franchise as we continued to realize merger-related cost savings, reduced our funding costs and maintained a stable net interest margin. While we continue to incur certain integration-related expenses, the benefits of the HomeStreet merger are increasingly evident in our results.\u201d<\/p>

    \nPresentation of Results \u2013 HomeStreet Bank Merger<\/b><\/p>

    \nOn September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics\u2019 financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank\u2019s historical financial results on a standalone basis and results of the combined company beginning September 2, 2025. In addition, for periods prior to September 2, 2025, the number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. The estimates of fair value were recorded based on valuations as of the merger date. These estimates are considered preliminary as of June 30, 2026, are subject to change for up to one year after the merger date, and any changes could be material.<\/p>

    \nAdoption of Purchased Seasoned Loans Accounting Standard<\/b><\/p>

    \nThe Company early adopted Accounting Standards Update (\u201cASU\u201d) 2025-08, \u201cFinancial Instruments\u2013Credit Losses (Topic 326): Purchased Loans,\u201d during the fourth quarter of 2025. This new standard, which the Company elected to early adopt as of January 1, 2025, requires acquired loans that meet certain criteria at acquisition (purchased seasoned loans) to be recognized at their purchase price plus the amount of the allowance for expected credit losses (gross-up approach). As a result, for purchased seasoned loans acquired in the HomeStreet merger, the Company established an allowance for credit losses of $20.3 million at the date of acquisition for these loans and reversed the provision for credit losses recorded in the third quarter of 2025, and recorded it as part of the acquired loans initial amortized cost basis. Required disclosures regarding the impact of the adoption were presented when the Company filed its annual report on Form 10-K for the year ended December 31, 2025. In addition, third quarter 2025 results will be retrospectively adjusted when the Company files its quarterly report on Form 10-Q for the quarter ended September 30, 2026.<\/p>

    \nThe impact of the adoption is reflected in the comparative prior period results as of September 30, 2025 presented in this earnings release.<\/p>

    \nINCOME STATEMENT HIGHLIGHTS<\/b><\/p>

    \nSummary Income Statement<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nQuarter Ended<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nSix Months Ended<\/b><\/p><\/td><\/tr>\n

    \n(in thousands)<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nMarch 31,\n2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,\n2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2025<\/b><\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal interest income<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n237,942<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n241,936<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n178,153<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n479,878<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n351,738<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal interest expense<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n60,770<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n62,891<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n48,024<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n123,661<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n93,155<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nNet interest income<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n177,172<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n179,045<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n130,129<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n356,217<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n258,583<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nProvision (reversal of provision) for credit losses on loans<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(904<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n7,593<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n357<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n6,689<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(3,395<\/p><\/td>

    \n)<\/p><\/td><\/tr>\n

    \nProvision (reversal of provision) for credit losses on unfunded lending commitments<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(1,863<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n174<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(725<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(1,689<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(631<\/p><\/td>

    \n)<\/p><\/td><\/tr>\n

    \nTotal provision (reversal of provision) for credit losses<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(2,767<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n7,767<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(368<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n5,000<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(4,026<\/p><\/td>

    \n)<\/p><\/td><\/tr>\n

    \nTotal noninterest income<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n23,796<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n21,020<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19,625<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n44,816<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n34,606<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nAcquisition and integration costs<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n5,923<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n4,794<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n5,639<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n10,717<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n5,989<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nOther noninterest expense<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n118,550<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n125,633<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n85,441<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n244,183<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n170,729<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal noninterest expense<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n124,473<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n130,427<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n91,080<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n254,900<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n176,718<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nIncome before income tax expense<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n79,262<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n61,871<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n59,042<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n141,133<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n120,497<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nIncome tax expense<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n21,561<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n17,781<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16,557<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n39,342<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n34,221<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nNet income<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n57,701<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n44,090<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n42,485<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n101,791<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n86,276<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n<\/table>

    \nNet Interest Income<\/i><\/b><\/p>

    \nSecond Quarter of 2026 vs. First Quarter of 2026<\/i><\/p>

    \nNet interest income in the second quarter of 2026 was $1.9 million lower than the first quarter of 2026 primarily as a result of a decrease in average interest earning assets of $468.4 million, partially offset by lower interest expense on certificates of deposit. Mechanics\u2019 net interest margin increased from 3.61% to 3.62% primarily due to runoff of higher cost certificates of deposit.<\/p>

    \nSix Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025<\/i><\/p>

    \nNet interest income for the six months ended June 30, 2026 increased $97.6 million as compared to the six months ended June 30, 2025 due primarily to an increase of $4.7 billion in average interest-earning assets, as well as an increase in net interest margin from 3.44% in the six months ended June 30, 2025 to 3.61% in the six months ended June 30, 2026, as a result of the HomeStreet merger.<\/p>

    \nProvision for Credit Losses<\/i><\/b><\/p>

    \nSecond Quarter of 2026 vs. First Quarter of 2026<\/i><\/p>

    \nThe reversal of provision for credit losses in the second quarter of 2026, which consists of the provision for loans and unfunded commitments, was $2.8 million, compared to a provision of $7.8 million for the first quarter of 2026. The reversal of provision for the second quarter was primarily driven by the combination of an increase in modeled loss rates for multifamily loans, the elimination of economic qualitative adjustments now that the Middle East conflict and corresponding economic impact are embedded in expected loss rate modeling, and a reduction in residential construction and HELOC unfunded commitments.<\/p>

    \nSix Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025<\/i><\/p>

    \nThe provision for credit losses was $5.0 million for the six months ended June 30, 2026, compared to a reversal of provision of $4.0 million for the six months ended June 30, 2025. The increase in provision for the six months ended June 30, 2026 was driven primarily by an increase in modeled loss rates for multifamily loans during 2026, offset slightly by downward qualitative adjustments and lower balances. The increase in provision was partially offset by a reduction in the unfunded commitments reserve.<\/p>

    \nNoninterest Income<\/i><\/b><\/p>

    \nSecond Quarter of 2026 vs. First Quarter of 2026<\/i><\/p>

    \nNoninterest income in the second quarter of 2026 increased $2.8 million from the first quarter of 2026 primarily due to higher other noninterest income from the gain on sale of the Fannie Mae Multifamily Delegated Underwriting and Servicing (\u201cDUS\u00ae\u201d) business line and a mortgage servicing rights valuation adjustment.<\/p>

    \nSix Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025<\/i><\/p>

    \nNoninterest income for the six months ended June 30, 2026 increased $10.2 million from the six months ended June 30, 2025 primarily due to higher loan servicing income, ATM network fee income and other noninterest income, which were all driven by the HomeStreet merger. In addition, the increase in other noninterest income resulted from the gain on sale of the DUS business line and a mortgage servicing rights valuation adjustment. The increases in noninterest income were partially offset by lower gain on sales and calls of investment securities.<\/p>

    \nNoninterest Expense<\/i><\/b><\/p>

    \nSecond Quarter of 2026 vs. First Quarter of 2026<\/i><\/p>

    \nNoninterest expense decreased $6.0 million in the second quarter of 2026 compared to the first quarter of 2026, primarily due to lower salaries and employee benefits expense from a decrease in headcount as a result of integration following the HomeStreet merger.<\/p>

    \nSix Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025<\/i><\/p>

    \nNoninterest expense increased $78.2 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 primarily due to higher salaries and employee benefits expense, occupancy costs, equipment expense, amortization of intangibles and acquisition and integration related costs from the HomeStreet merger.<\/p>

    \nIncome Taxes<\/i><\/b><\/p>

    \nSecond Quarter of 2026 vs. First Quarter of 2026<\/i><\/p>

    \nOur effective tax rate during the second quarter of 2026 was 27.2% as compared to 28.7% in the first quarter of 2026 and our federal statutory rate was 21.0%. The effective tax rate decreased compared to the prior quarter as a result of a $1.7 million remeasurement of deferred tax assets in the first quarter.<\/p>

    \nSix Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025<\/i><\/p>

    \nOur effective tax rate for the six months ended June 30, 2026 was 27.9% as compared to 28.4% for the six months ended June 30, 2025 and our federal statutory rate was 21.0%. The effective tax rate decreased compared to the six months ended June 30, 2025 as a result of a lower state tax rate due to more taxable income being apportioned to states with lower tax rates and an increase in tax exempt investments and loans, both a result of the HomeStreet merger. These were partially offset by the $1.7 million remeasurement of deferred tax assets in the current year.<\/p>

    \nBALANCE SHEET HIGHLIGHTS<\/b><\/p>

    \nSelected Balance Sheet Items<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

    \n(in thousands)<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,\n2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nMarch 31,\n2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nDecember 31,\n2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nSeptember 30,\n2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,\n2025<\/b><\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nCash and cash equivalents<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n553,915<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n483,513<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n1,029,983<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n1,442,647<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n2,078,960<\/p><\/td><\/tr>\n

    \nTrading securities<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n46,595<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n49,463<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n49,518<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n50,357<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td><\/tr>\n

    \nSecurities available-for-sale<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n4,119,215<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n3,933,705<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n3,993,385<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n3,490,478<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,562,438<\/p><\/td><\/tr>\n

    \nSecurities held-to-maturity<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1,286,813<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1,313,520<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1,336,632<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1,363,636<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1,391,211<\/p><\/td><\/tr>\n

    \nLoans held for investment (before ACL) (1)<\/sup><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13,576,196<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13,852,209<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14,176,936<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14,587,530<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n9,239,834<\/p><\/td><\/tr>\n

    \nTotal assets (1)<\/sup><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n21,230,839<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n21,388,955<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n22,351,475<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n22,721,935<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16,571,173<\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nNoninterest-bearing demand deposits<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n6,420,746<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n6,511,998<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n6,744,082<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n6,748,479<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n5,453,890<\/p><\/td><\/tr>\n

    \nTotal deposits<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n18,089,437<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n18,242,769<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19,024,997<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19,452,819<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13,968,863<\/p><\/td><\/tr>\n

    \nBorrowings<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n80,000<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td><\/tr>\n

    \nLong-term debt<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n130,420<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n128,815<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n192,014<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n190,123<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td><\/tr>\n

    \nTotal liabilities<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n18,540,908<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n18,597,563<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19,489,100<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19,934,686<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14,154,556<\/p><\/td><\/tr>\n

    \nTotal shareholders\u2019 equity (1)<\/sup><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,689,931<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,791,392<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,862,375<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,787,249<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,416,617\u00a0<\/p><\/td><\/tr>\n<\/table>\n\n

    \n(1)<\/p><\/td>

    		\u00a0<\/td>\n

    \nPrior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.<\/p><\/td><\/tr>\n<\/table>

    \nInvestment<\/i> Securities<\/i><\/b><\/p>

    \nTrading securities totaled $46.6 million and $49.5 million at June 30, 2026 and March 31, 2026. Securities available-for-sale increased by $185.5 million during the second quarter of 2026 to $4.1 billion at June 30, 2026, primarily due to purchases of agency MBS, partially offset by paydowns. Securities held-to-maturity decreased by $26.7 million in the second quarter of 2026, due to paydowns, and totaled $1.3 billion at June 30, 2026.<\/p>

    \nLoans<\/i><\/b><\/p>

    \nTotal loans at June 30, 2026 were $13.6 billion, a decrease of $276.0 million from $13.9 billion at March 31, 2026, due primarily to loan repayments during the quarter, partially offset by originations.<\/p>

    \nDeposits<\/i><\/b><\/p>

    \nTotal deposits decreased by $153.3 million during the second quarter of 2026 to $18.1 billion at June 30, 2026. The decrease was due to $199.2 million certificates of deposit runoff, partially offset by $45.9 million of core deposit growth.<\/p>

    \nNoninterest-bearing demand deposits totaled $6.4 billion and represented 35% of total deposits at June 30, 2026, compared to $6.5 billion, or 36% of total deposits, at March 31, 2026.<\/p>

    \nBorrowings<\/i><\/b><\/p>

    \nTotal borrowings were $80.0 million at June 30, 2026, compared to zero at March 31, 2026. The increase in the second quarter of 2026 was due to short-term Federal Reserve Discount Window borrowings during the quarter.<\/p>

    \nEquity<\/i><\/b><\/p>

    \nDuring the second quarter of 2026, total shareholders\u2019 equity decreased by $101.5 million to $2.7 billion and tangible common equity (1)<\/sup> increased slightly by $5.9 million, and was $1.75 billion at June 30, 2026. The decrease in total shareholders\u2019 equity for the second quarter of 2026 primarily resulted from a net decrease in retained earnings in the second quarter of 2026 from net income, less dividends paid to common shareholders. Tangible common equity remained relatively flat due to the reduction in intangibles from the sale of the DUS business line, which offset the decrease in total shareholders\u2019 equity.<\/p>

    \nAt June 30, 2026, book value per common share decreased to $12.15, compared to $12.61 at March 31, 2026. At June 30, 2026, tangible book value per common share (1)<\/sup> increased to $7.56, compared to $7.53 at March 31, 2026.<\/p>\n\n

    \n(1)<\/p><\/td>

    		\u00a0<\/td>\n

    \nNon-GAAP measure. Refer to section \u201cNon-GAAP Financial Measures and Reconciliations\u201d below.<\/p><\/td><\/tr>\n<\/table>

    \nCAPITAL AND LIQUIDITY<\/b><\/p>

    \nCapital ratios remain strong with Total risk-based capital at 16.70% and a Tier 1 leverage ratio of 8.71% at June 30, 2026. The following table presents our regulatory capital ratios as of the dates indicated:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nMarch 31,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nDecember 31,<\/b>2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nSeptember 30,<\/b>2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2025<\/b><\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nMechanics Bancorp (1),(2)<\/sup><\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTier 1 leverage capital (to average assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n8.71<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n8.66<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n8.65<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n10.34<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nn\/a<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nCommon equity Tier 1 capital (to risk-weighted assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.39<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13.92<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.09<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13.42<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nn\/a<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTier 1 risk-based capital (to risk-weighted assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.39<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13.92<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.09<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n13.42<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nn\/a<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal risk-based capital (to risk-weighted assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.70<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.16<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.27<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n15.57<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nn\/a<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nMechanics Bank (1)<\/sup><\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTier 1 leverage capital (to average assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n9.38<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n9.31<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n9.58<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n11.46<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n10.16<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \nCommon equity Tier 1 capital (to risk-weighted assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n15.48<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.96<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n15.59<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.87<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n18.27<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \nTier 1 risk-based capital (to risk-weighted assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n15.48<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.96<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n15.59<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n14.87<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n18.27<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \nTotal risk-based capital (to risk-weighted assets)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.74<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.21<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.81<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n16.13<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19.10<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n<\/table>\n\n\n

    \n(1)<\/p><\/td>

    		\u00a0<\/td>\n

    \nOn September 2, 2025, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the merger and becoming a wholly-owned subsidiary of Mechanics Bancorp. As a result, for periods prior to September 30, 2025, regulatory capital ratios are only presented for Mechanics Bank.<\/p><\/td><\/tr>\n

    \n(2)<\/p><\/td>

    		\u00a0<\/td>\n

    \nRegulatory capital ratios at June 30, 2026 are preliminary.<\/p><\/td><\/tr>\n<\/table>

    \nAt June 30, 2026, Mechanics had available borrowing capacity of $5.9 billion from the FHLB, $4.4 billion from the Federal Reserve and $5.0 billion under borrowing lines established with other financial institutions.<\/p>

    \nCREDIT QUALITY<\/b><\/p>

    \nAsset Quality Information and Ratios<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

    \n(dollars in thousands)<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nMarch 31,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nDecember 31,<\/b>2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nSeptember 30,<\/b>2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2025<\/b><\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nDelinquent loans held for investment:<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n30-89 days past due (1)<\/sup><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n54,529<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n43,556<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n58,459<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n55,899<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n106,710<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n90+ days past due<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n40,888<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n33,447<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n34,686<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n38,316<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n10,660<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal delinquent loans<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n95,417<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n77,003<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n93,145<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n94,215<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n117,370<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal delinquent loans to loans held for investment<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.70<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.56<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.66<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.65<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1.27<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nNonperforming assets:<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nNonaccrual loans<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n48,557<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n44,379<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n42,863<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n60,586<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n18,606<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n90+ days past due and accruing<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n6,543<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n4,098<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n3,943<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,653<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n717<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal nonperforming loans<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n55,100<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n48,477<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n46,806<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n63,239<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n19,323<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nForeclosed assets<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n4,262<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n4,658<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n4,990<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1,675<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u2014<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nTotal nonperforming assets<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n59,362<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n53,135<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n51,796<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n64,914<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n19,323<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nAllowance for credit losses on loans<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n152,601<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n156,796<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n153,319<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n168,959<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n68,334<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nAllowance for credit losses on loans to total loans held for investment<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1.12<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1.13<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1.08<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n1.16<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.74<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \nAllowance for credit losses on loans to nonaccrual loans<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n314.27<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n353.31<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n357.70<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n278.88<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n367.27<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \nNonaccrual loans to total loans held for investment<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.36<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.32<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.30<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.42<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.20<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n

    \nNonperforming assets to total assets<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.28<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.25<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.23<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.29<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.12<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n<\/table>\n\n

    \n(1)<\/p><\/td>

    		\u00a0<\/td>\n

    \nPrior period comparative disclosures for September 30, 2025 reflect the impact of adoption of ASU 2025-08.<\/p><\/td><\/tr>\n<\/table>

    \nAt June 30, 2026, total delinquent loans were $95.4 million, compared to $77.0 million at March 31, 2026. The increase was primarily due to two matured commercial real estate loans that became past due during the quarter and were in process of refinance or extension as of June 30, 2026. Total delinquent loans as a percentage of total loans were 0.70% at June 30, 2026, as compared to 0.56% at March 31, 2026.<\/p>

    \nAt June 30, 2026, nonperforming assets were $59.4 million, compared to $53.1 million at March 31, 2026. The slight increase was primarily due to additional single family, home equity and multifamily nonperforming loans during the quarter, partially offset by $2.4 million of foreclosed assets sold. Nonperforming assets as a percentage of total assets increased to 0.28% at June 30, 2026, as compared to 0.25% at March 31, 2026.<\/p>

    \nAllowance for Credit Losses<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nQuarter Ended<\/b><\/p><\/td>

    		\u00a0<\/td>\n

    \nSix Months Ended<\/b><\/p><\/td><\/tr>\n

    \n(dollars in thousands)<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nMarch 31,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2025<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2026<\/b><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \nJune 30,<\/b>2025<\/b><\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nAllowance for credit losses on loans:<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nBeginning balance<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n156,796<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n153,319<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n75,515<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n153,319<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n88,558<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nProvision (reversal of provision) for credit losses<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(904<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n7,593<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n357<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n6,689<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(3,395<\/p><\/td>

    \n)<\/p><\/td><\/tr>\n

    \nLoans charged off<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(6,308<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(7,205<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(9,949<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(13,513<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(22,166<\/p><\/td>

    \n)<\/p><\/td><\/tr>\n

    \nRecoveries<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n3,017<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n3,089<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n2,411<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n6,106<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n5,337<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nEnding balance<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n152,601<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n156,796<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n68,334<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n152,601<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n68,334<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nAllowance for credit losses on unfunded lending commitments:<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nBeginning balance<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n7,289<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n7,115<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n4,460<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n7,115<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n4,366<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nProvision (reversal of provision) for credit losses<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(1,863<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n174<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(725<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(1,689<\/p><\/td>

    \n)<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n(631<\/p><\/td>

    \n)<\/p><\/td><\/tr>\n

    \nEnding balance<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n5,426<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n7,289<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n3,735<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n5,426<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n$<\/p><\/td>

    \n3,735<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td><\/tr>\n

    \nNet charge-offs to average loans (1)<\/sup><\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.10<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.12<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.32<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.11<\/p><\/td>

    \n%<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n\u00a0<\/p><\/td>

    \n0.36<\/p><\/td>

    \n%<\/p><\/td><\/tr>\n<\/table>\n\n

    \n(1)<\/p><\/td>

    		\u00a0<\/td>\n

    \nRatios are annualized.<\/p><\/td><\/tr>\n<\/table>

    \nThe allowance for credit losses on loans totaled $152.6 million, or 1.12% of total loans at June 30, 2026, compared to $156.8 million, or 1.13% of total loans at March 31, 2026. The decrease in allowance was the result of a decrease in qualitative factors across loan types, with the greatest impact on commercial real estate loans due to the size of the portfolio, partially offset by higher expected loss rates due to a weaker economic outlook stemming from the conflict in the Middle East.<\/p>

    \nConference Call<\/b><\/p>

    \nThe Company will host a conference call and webcast to discuss its second quarter 2026 financial results at 11:00 a.m. Eastern Time (ET) on Wednesday, July 29, 2026. Investors and analysts interested in participating in the call are invited to dial 1-833-461-5787 (international callers please dial 1-585-542-9983) approximately 10 minutes prior to the start of the call. The pin to access the call is 513809929. A live audio webcast of the conference call will be available on the Company\u2019s website at https:\/\/ir.mechanicsbank.com<\/a>. The earnings presentation for the call will also be available on the Company\u2019s Investor Relations website prior to the call.<\/p>

    \nA replay of the conference call will be available within two hours of the conclusion of the call and can be accessed through the News & Events tab of the Company\u2019s website as well as through the webcast link: https:\/\/events.q4inc.com\/attendee\/513809929<\/a>.<\/p>

    \nAbout Mechanics Bancorp<\/b><\/p>

    \nMechanics Bancorp is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service, FDIC-insured bank with $21.2 billion in assets as of June 30, 2026, and 166 branches across California, Oregon, Washington and Hawaii. Founded in 1905 to help families, businesses and communities prosper, Mechanics Bank offers a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services.<\/p>

    \nTo learn more, visit www.MechanicsBank.com<\/a>.<\/p>

    \nCautionary Note<\/b><\/p>

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

    \nForward-Looking Statements<\/b><\/p>

    \nThis earnings release, including information incorporated by reference herein, contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended (\u201cExchange Act\u201d).<\/p> Contacts<\/b>

    \nInvestor Relations Inquiries<\/b>Mechanics Bancorp<\/b>Nathan Duda\nExecutive Vice President and Chief Financial Officer\nir@mechanicsbank.com<\/a><\/p> Read full story here <\/a>","protected":false},"excerpt":{"rendered":"

    \u00a0WALNUT CREEK, Calif.–(BUSINESS WIRE)–Mechanics Bancorp (NASDAQ: MCHB):<\/p>\n

    Second Quarter Highlights<\/p>\n

    $21.2 billion
    \nTotal Assets
    \n\u00a0
    \n$57.7 million
    \nNet Income
    \n\u00a0
    \n14.39%
    \nCET1 Ratio (1)
    \n\u00a0
    \n$12.15
    \nBook Value Per Share
    \n$7.56
    \nTangible Book Value Per Share (2)…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-47082","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/47082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47082"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/47082\/revisions"}],"predecessor-version":[{"id":47083,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/47082\/revisions\/47083"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}