Mechanics Bank (MCHB) Stock

Mechanics Bank (MCHB) is a Financials stock trading at $16.38 (as of 2026-08-20), with a market capitalization of $3.64B and a trailing P/E of 23.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Mechanics Bank is a California-based financial institution serving individual clients and small and middle-market businesses. It offers deposit accounts, lending products (including consumer, commercial, and small business administration loans), payment cards and cash-management services, and online and mobile banking through its branch network in multiple California regions.

Understand Mechanics Bank: how it makes money

Mechanics Bank provides checking and savings accounts, loans for individuals and small to middle-market businesses, and fee-based banking services such as credit and debit cards, cash management, fraud prevention, and merchant and payroll services.

For a bank like Mechanics Bank, results depend on how effectively it funds and grows loans with deposits (loan-to-deposit and cost of deposits) while managing credit risk (net charge-offs, delinquencies, and the allowance for credit losses).

Business quality (Mixed): Mixed picture, capital ratios and deposit mix look solid, but reported equity returns are negative while credit loss metrics are still active.

Valuation: At 9× earnings, MCHB trades 32% below the Banking average (13×). Note: one-time items can distort reported P/E.

Bull case

Capital strength metrics are available and look supported: Latest quarter shows a Common Equity Tier 1 Capital Ratio of 13.91 percent and a Tier 1 Leverage Ratio of 8.66 percent.
Deposit funding mix and credit loss indicators are monitored: Noninterest-Bearing Deposit Mix is 36.0 percent, and credit indicators include Net Charge-Offs of 0.38 percent and Delinquencies of 1.11 percent.
Core profitability using tangible equity is positive: Return on Average Tangible Equity is 11.1 percent, even though other equity return measures are negative.

Bear case

Equity return metrics are negative: Return on Average Equity is -4.4 percent, and Core Return on Average Equity is -3.0 percent in the latest quarter.
Credit provisions and loss metrics remain relevant: Allowance for Credit Losses as a Percentage of Loans is 1.13 percent, alongside positive Net Charge-Offs (0.38 percent) and Delinquencies (1.11 percent).
Loan balance direction and sales activity suggest mix changes: Loans Held for Investment Decrease is 0.17 USD_B, and Loans Sold is 0.05 USD_B, indicating active repositioning rather than straightforward net buildup.

Valuation — source: SEC EDGAR (first-party)
Price	$16.38
Market Cap	$3.64B
P/E Ratio	23.9
EV / EBITDA	17.0
Price / Book	1.35
Price / Sales	29.84
Dividend Yield	8.3%
FCF Yield	4.3%
DCF Value (model)	$31.33
DCF Upside vs Price	91.3%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$49.73M
Net Margin	534.4%
Return on Equity	14.0%
Debt / Equity	0.08
Revenue Growth (YoY)	-83.6%
EPS Growth (YoY)	-213.0%
FCF Growth (YoY)	-602.3%

Valuation vs Sector & Industry
Stock P/E	23.9
Sector P/E (Financials)	15.1
Industry P/E (Banking)	12.9
vs Sector	57.8%
vs Industry	84.9%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock Fund Advisors ($62.14M)
Institutional Holders Tracked	10

Company
Sector	Financials
Industry	Banking
CEO	C. J. Johnson
Employees	1,800
Country	US
IPO Date	2007-05-01

Related Companies (Business model: Universal / Commercial Bank; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.