Start here if you're new
what it is
This is a regional bank with $22.4 billion in assets and 166 branches across four Western states.
how it gets paid
Last year Mechanics Bancorp made n/a in revenue.
what just happened
Latest quarter EPS came in at $0.69, up 165% vs. prior year, with revenue of $36 million.
At a glance
B+ balance sheet — decent shape, but not bulletproof
20/100 earnings predictability — expect surprises
46.1x trailing p/e — you're paying up for this one
11.2% dividend yield — cash in your pocket every quarter
$0.34 fy2025 eps est
xvary composite: 57/100 — below average
What they do
This is a regional bank with $22.4 billion in assets and 166 branches across four Western states.
This bank wins the old-fashioned way: it is already in your town and already has your money. Mechanics Bank had $22.4 billion in assets and 166 branches as of December 31, 2025, across California, Hawaii, Oregon, and Washington. Branch density is distribution — plain English: local reach — so what: if your checking account, mortgage, and wealth advice sit in one place, leaving is annoying.
How they make money
n/a
annual revenue
The products that matter
business lending and treasury services
Commercial Banking
$22.4B asset base
This is the core bank. The reported asset base reached $22.4B, and the 14.07% CET1 ratio tells you the franchise still has room to absorb stress while it lends.
capital-backed core
deposit accounts and consumer credit
Personal Banking
$0.40 quarterly dividend
Retail deposits fund the bank and support the payout. At a stated 11.2% yield, the dividend is part of the thesis whether you like it or not.
income hook
post-merger execution
HomeStreet Integration
$300M run-rate target
This is the swing factor. Management is aiming for $300M in run-rate earnings by Q4 2026. Hit it, and the merger case looks disciplined. Miss it, and the whole rerating story gets thinner fast.
the real catalyst
Key numbers
11.2%
dividend yield
That yield is the bait. The problem is the FY2025 EPS estimate is just $0.34, versus a $1.60 annualized dividend, so your income case depends on more than current earnings.
46.1x
trailing p/e
P/E → price-to-earnings → what you pay for each dollar of profit. So what: paying 46.1x for a bank only works if earnings rebound hard.
$225M
long-term debt
Long-term debt equals 6% of capital. Translation: borrowing is present but not the main balance-sheet problem, so your real debate is earnings quality, not leverage.
5/100
price stability
Price stability → how calm the stock has been → so what: 5 out of 100 is very low for something many investors may treat like a sleepy bank dividend name.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 2 — safer than 80% of stocks
- price stability 5 / 100
- long-term debt $225M (6% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for MCHB right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter EPS came in at $0.69, up 165% vs. prior year, with revenue of $36 million.
That looks better than the recent history, but the bigger picture is messy. FY2024 EPS was -$7.65, so one strong quarter does not erase the volatility.
$36M
revenue
$0.69
eps
n/a
n/a
the number that mattered
$0.69 matters because it is proof the bank can still produce profits, but it remains far below the level needed to make the dividend look easy.
source: company earnings report, 2026
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What could go wrong
The #1 risk is missing the HomeStreet integration math. This is not a generic bank risk. It is specific to a company promising $300M in run-rate earnings by Q4 2026 while its legacy revenue trend still points down.
high
HomeStreet integration miss
The merger logic now sits on a specific number: $300M run-rate earnings by Q4 2026. If management misses it, the stock loses the cleanest argument for its premium setup.
directly pressures the earnings story investors are paying for at 46.1x trailing earnings
med
Revenue still contracting
Revenue has declined 1.3% a year. A 41.3% margin can cushion that for a while. It cannot turn shrinkage into a growth story by itself.
keeps pressure on valuation if the bank cannot show real top-line stabilization
med
Dividend pressure
An 11.2% yield is generous until it is not. If earnings normalize lower or capital needs rise during integration, that $0.40 quarterly payout becomes harder to defend.
puts both the income case and investor confidence under pressure at the same time
med
Multiple compression
Banks rarely get the benefit of the doubt at 46.1x earnings unless growth is obvious. MCHB does not have obvious growth yet. It has a promise.
any earnings disappointment can hit both profits and the multiple you are willing to pay for them
A miss on the $300M run-rate target would hit the exact part of the thesis carrying the stock: merger-driven earnings credibility.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
$300M run-rate earnings by Q4 2026
This is the post-merger report card. If management gets there, the integration story has teeth. If not, the premium setup gets harder to justify.
calendar
$0.40 quarterly dividend
Next payable Mar 19, 2026, with a Mar 9 record date. When a stock yields 11.2%, every dividend declaration becomes an earnings quality signal.
trend
74.71% institutional ownership
Institutions own nearly three-quarters of the stock, and holdings increased 57.54% last quarter. That means the name has sponsorship, but it also means professional expectations matter here.
risk
$14.50 average price target
The street's average target sits below the current $15.66 price. In plain English: analysts see less upside than the market is currently assuming.
Analyst rankings
earnings predictability
20 / 100
Low predictability means quarterly results can swing more than you want from a yield stock. In human-speak: analysts do not view this as a smooth earnings story yet.
street target signal
$14.50 avg
The average target is below the current $15.66 price. That is not a screaming endorsement from the sell side.
source: institutional data
Institutional activity
institutional ownership data for MCHB is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$16
current price
n/a
target midpoint · n/a from current
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