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Mechanics Bank

Walnut Creek, CA · Cert 1768 · 2011 TCRT

State charter, non-member · FDIC · 167 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks over $10B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks over $10B in assets (n=142 to 144). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

80

Q2 2024Q2 2026peer median (50)

Asset Quality

69

Q2 2024Q2 2026peer median (50)

Profitability

37

Q2 2024Q2 2026peer median (50)

Liquidity

55

Q2 2024Q2 2026peer median

Efficiency

26

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-10

Mechanics Bank

Walnut Creek, CA · Cert 1768 · 2011 TCRT

State charter, non-member · FDIC · 167 branches

Q2 2026

$21.2BAssets
$13.6BLoans
$18.1BDeposits
$2.8BEquity
Loan mix
87%RE $12.0B3%C&I $0.4B10%Consumer $1.4BQ2 2025Q2 2026
Deposit mix
64%Interest-bearing $11.7B36%Noninterest $6.4BQ2 2025Q2 2026

NIM

4.24%Q2 ’244.26%Q2 ’254.50%Q2 ’26+5%+8%

Non-interest income vs. expense

2.04%Q2 ’242.14%Q2 ’252.38%Q2 ’26+7%+11%

Market Position · San Francisco-Oakland-Fremont, CA · 2026 SOD (annual) · 0.8% share · #12 of 69 inst. · $4.0B of $513.2B

6.2% Contra Costa
1.0% Orange
17.0% San Luis Obispo
7.6% Santa Barbara

Executive Summary

  • Earnings: ROA of 0.99%, down 5 bps year over year; NIM at 3.56%.
  • Asset quality: problem loans at 0.41% of loans (+20 bps YoY), with net charge-offs at 0.11%.
  • Capital: tier 1 leverage ratio of 9.38%, down 78 bps from a year ago.
  • Funding: loans stand at 75.06% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.99%-5 bps YoY

Net Interest Margin (YTD, annualized)

3.56%+26 bps YoY

Efficiency Ratio (YTD, annualized)

58.78%-62 bps YoY

Tier 1 Leverage Ratio

9.38%-78 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.04%1.05%1.44%0.87%0.99%-5 bps
Return on Equity7.30%7.58%10.38%6.34%7.33%+3 bps
Net Interest Margin3.30%3.06%2.76%3.53%3.56%+26 bps
Efficiency Ratio59.40%60.66%55.79%59.91%58.78%-62 bps
Non-Interest Burden1.78%1.44%1.12%2.00%1.97%+19 bps
Growth
Asset Growth (YoY)-4.34%36.77%35.61%29.37%28.18%+3,251 bps
Loan Growth (YoY)-9.53%47.33%47.04%47.13%46.95%+5,647 bps
Deposit Growth (YoY)-0.93%37.90%36.49%30.46%29.53%+3,046 bps
Asset Quality
Nonperforming Loans / Loans0.22%0.44%0.34%0.36%0.41%+20 bps
Net Charge-Offs / Loans0.36%0.23%0.28%0.12%0.11%-26 bps
Allowance / Loans0.74%1.16%1.08%1.13%1.12%+38 bps
Allowance Coverage of NPLs3.4x2.6x3.2x3.2x2.7x-0.7x
Capital
Tier 1 Leverage Ratio10.16%11.46%9.58%9.31%9.38%-78 bps
Total Risk-Based Capital19.10%16.13%16.81%16.21%16.74%-236 bps
Equity / Assets14.58%13.09%13.69%13.68%13.30%-128 bps
Liquidity & Funding
Loans / Deposits66.16%75.17%74.53%75.94%75.06%+890 bps
Liquid Assets / Assets19.67%11.44%9.71%7.52%7.52%-1,215 bps
CRE / Total Capitaln/a413%392%402%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-10

Mechanics Bank

Walnut Creek, CA · Cert 1768 · Peer group: banks over $10B in assets (n=142-144) · 2011 TCRT

State charter, non-member · FDIC · 167 branches

Q2 2026

$21.2BAssets
$13.6BLoans
$18.1BDeposits
$2.8BEquity

Executive Summary

  • Strongest standing: nonperforming loans / loans outperforms 82% of banks over $10B in assets (rank 26 of 142).
  • Widest gap: return on equity trails 83% of banks over $10B in assets (rank 120 of 144).
  • Overall: at or above the peer median on 6 of 9 directional measures.

Return on Assets

1.01%

Rank 104 of 144

Net Interest Margin

3.56%

Rank 48 of 144

Efficiency Ratio

62.33%

Rank 108 of 144

Equity / Assets

13.30%

Rank 30 of 144

Non-interest income vs. expense

$87.0M$507.6MINCOMEEXPENSE
Unfavorable gap of $420.6M · efficiency ratio beats 26% of banks over $10B in assets
Bank 62.33%Peer median 56.0%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.01%1.00%1.26%1.54%Beats 28%104 / 144
Return on Equity7.62%8.98%11.34%14.40%Beats 17%120 / 144
Net Interest Margin3.56%2.82%3.31%3.68%Beats 67%48 / 144
Efficiency Ratio62.33%49.42%56.02%62.41%Beats 26%108 / 144
Asset Quality
Nonperforming Loans / Loans0.41%0.48%0.73%1.07%Beats 82%26 / 142
Net Charge-Offs / Loans0.10%0.05%0.11%0.22%Beats 55%65 / 142
Capital
Tier 1 Capital Ratio15.48%12.07%12.98%14.92%Beats 81%28 / 144
Total Risk-Based Capital Ratio16.74%13.39%14.14%16.25%Beats 81%28 / 144
Equity / Assets13.30%9.69%11.39%12.96%Beats 79%30 / 144
Liquidity & Funding
Loans / Deposits75.06%75.72%84.92%91.56%24th pctl109 / 143
Loans / Assets63.94%59.83%69.07%74.80%33rd pctl97 / 144
Brokered Deposits / Depositsn/aNot reported for this institution