Mechanics Bancorp Class A Common Stock (MCHB)

FairStock Score: 72/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Mechanics Bancorp as a small regional bank with a narrow local moat: deposits and lending relationships across California, Oregon, Washington and Hawaii. The filed record shows a sharp turnaround. In FY2023, net income was a loss of $27.5 million. In FY2024, net income was $29.0 million, and in FY2025 it jumped to $265.7 million, with diluted EPS of $1.27 versus $0.14. In fiscal Q2 2026, the quarter ended 2026-06-30, filed net income was $57.7 million and diluted EPS was $0.26, up from $42.5 million and $0.21 in fiscal Q2 2025. That is real profit momentum, but I want to know how much came from core spread income versus one-time items; filed revenue for that quarter was only $13.6 million, which is odd against the net income figure and tells me the data needs reconciliation. At the 2026-10-13 close of $14.24, FairStock calculations put the P/E at 11.12, P/B at 1.23 and PEG at 0.31, with ROE of 11.02%. The 10.96% dividend yield is attractive but looks stretched against $1.28 EPS, implying payout above 100%. Piotroski is 4/9, so balance sheet and earnings quality are not screaming strength. FairStock calls it a turnaround—returned to profit after a loss within three years—and that fits. I cannot judge CET1, net interest margin, combined ratio, credit losses or reserve coverage because they are not in the data; for a bank, the credit and capital measures are essential. Cheap on paper, but only if credit remains clean and the dividend is covered.

In plain English: Mechanics Bancorp is a regional bank holding company serving California, Oregon, Washington and Hawaii. It has swung from a loss a few years ago to solid profits, and its shares look inexpensive compared with those profits, though the very high dividend and limited credit details are risks. Overall, the business looks improving but not without uncertainty.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer