Mechanics Bancorp Q2 Profit Jumps on HomeStreet Merger, Cost Cuts
MCHB sits 26% above its 52-week low of $12.52.
Summary
Mechanics Bancorp reported Q2 net income of $57.7 million, or $0.25 per share, a sharp rise from the prior quarter driven by the completed HomeStreet merger and sale of its Fannie Mae DUS business. Noninterest income got a boost from the DUS sale gain and a mortgage servicing rights adjustment, while expenses fell on merger-related headcount reductions. A reversal of credit loss provisions also helped, reflecting improved modeled loss rates and lower unfunded commitments. This follows the Q1 report where core results were stronger despite a GAAP earnings dip, and the 75% dividend hike in May signaled confidence. With merger integration largely done, management expects a return to business as usual and continued cost savings.
At the time of this announcement, MCHB was trading at $15.80 on NASDAQ in the Finance sector, with a market capitalization of approximately $3.7B. The 52-week trading range was $12.52 to $43,478.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.