Q3 Net Income Falls to $46M as Securities Restructuring Drives $32M Loss
MCHB sits 16% above its 52-week low of $12.915.
Summary
Mechanics Bancorp earned $46.0 million, or $0.20 per diluted share, in Q3 2026, down from $57.7 million, or $0.25, in Q2, on net interest income of USD 174.902 million. Two balance-sheet cleanup moves drove the decline: a $308 million securities portfolio restructuring produced a $32.3 million loss on sale, and the sale of $417 million of performing indirect auto loans cost $10.3 million. Net interest margin slipped to 3.55% from 3.62% on higher deposit costs, with total cost of deposits at 1.33% versus 1.25%. Credit trends improved — delinquent loans fell to $67.5 million, or 0.52% of loans, from $95.4 million and 0.70%, and the company booked a $15.2 million reversal of credit loss provision. Capital remains solid at a 14.73% CET1 ratio, but book value per share dropped to $11.59 from $12.15 and tangible book value to $7.05 from $7.56. Management hosts its earnings call at 11:00 a.m. ET on October 29.
At the time of this announcement, MCHB was trading at $14.94 on NASDAQ in the Finance sector, with a market capitalization of approximately $3.5B. The 52-week trading range was $12.92 to $17.38. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: BusinessWire.