Mechanics Bancorp reported lower third-quarter earnings, with net income falling to $46.0 million from $57.7 million in the prior quarter. The Walnut Creek-based bank holding company also reported declines in assets, loans and deposits, while its cost of deposits increased.
The company released its third-quarter results on October 28 and said executives would discuss them with investors and analysts in a webcast scheduled for October 29 at 11 a.m. Eastern.
Key details
- Earnings: Net income was $46.0 million, or $0.20 per diluted share, compared with $57.7 million, or $0.25 per share, in the second quarter.
- Nine-month results: Net income for the first nine months of 2026 was $147.8 million, or $0.64 per diluted share. For the same period in 2025, it was $154.6 million, or $0.72 per diluted share.
- Balance sheet: Total assets were $20.9 billion at September 30, down from $21.2 billion at June 30. Loans declined to $13.0 billion from $13.6 billion.
- Deposits: Total deposits edged down to $18.0 billion from $18.1 billion. Noninterest-bearing deposits fell to $6.3 billion from $6.4 billion.
- Loan and deposit mix: The loans-to-deposits ratio decreased to 72% from 75%.
- Funding costs: The total cost of deposits rose to 1.33% in the quarter from 1.25% in the second quarter.
- Expenses: Noninterest expense declined to $114.2 million from $124.5 million. Mechanics attributed the decrease to lower acquisition and integration costs and lower salaries and employee benefits expense.
- Capital and book value: The company reported a 14.73% Common Equity Tier 1 capital ratio. Book value was $11.59 per share, and tangible book value was $7.05 per share.
The quarter’s reported figures show a smaller balance sheet and lower earnings than in the prior quarter, alongside a lower loans-to-deposits ratio and reduced noninterest expense. The deposit-cost measure moved in the opposite direction, increasing by 8 basis points.