PackageTrendsPeer
Letter portraitLegal landscapeQuarterYTD

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