Mechanics Bancorp Reports Third Quarter 2025 Results Following Completion of Merger with HomeStreet Bank

Company Release - 10/30/2025 Mechanics Bancorp (Nasdaq: MCHB): Third Quarter Highlights $22.7 billion Total Assets $55.2 million Net Income 13.42% CET1 Ratio(1) $12.54 Book Value Per Share $7.73 Tangible Book Value Per Share(2) Mechanics Bancorp (Nasdaq: MCHB) (“Mechanics”), the financial holding company of Mechanics Bank, today announced its financial results for the quarter ended September 30, 2025. Mechanics reported net income to common shareholders of $55.2 million, or $0.25 per diluted share, for the third quarter of 2025, compared to $42.5 million, or $0.20 per diluted share, for the second quarter of 2025. Mechanics’ financial results for the third quarter were materially impacted by its merger with HomeStreet, Inc. (“HomeStreet”), which was completed on September 2, 2025. Refer to “Presentation of Results – HomeStreet Bank Merger” below for additional information about the presentation of the financial statements following the merger. C.J. Johnson, President and CEO of Mechanics, said, “We are pleased to close our acquisition of HomeStreet and create the premier West Coast community bank. This transaction was financially and strategically compelling and we are excited to add the attractive markets of Washington, Oregon and Hawaii to our unique California franchise. Mechanics Bank has been a pillar of financial strength since 1905 and I’m excited for what the future has in store for our Company.” Third Quarter 2025 Highlights: Total assets increased $6.1 billion to $22.7 billion and total loans increased $5.3 billion from the prior quarter, resulting in a loans-to-deposits ratio of 75%.Total deposits increased $5.5 billion to $19.5 billion, an increase of 39% from the prior quarter, and noninterest-bearing deposits increased $1.3 billion to $6.7 billion, an increase of 24% from the prior quarter.Total cost of deposits was 1.45% for the quarter and 1.53% for the month of September 30, 2025.Strong capital ratios(1), including an estimated 15.59% Total risk-based capital ratio, 13.42% Tier 1 capital ratio, 13.42% CET1 capital ratio and 10.33% Tier 1 leverage ratio.Allowance for credit losses (“ACL”) to total loans of 1.16%, up from 0.74% at the prior quarter-end after a provision for credit losses on loans of $46.1 million, which includes a $20.2 million initial provision related to non-purchased credit deteriorated (“non-PCD”) loan balances. (1) Regulatory capital ratios at September 30, 2025 are preliminary. (2) Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below. No wholesale funding, as all HomeStreet FHLB borrowings and brokered deposits have been paid off.Preliminary bargain purchase gain recognized of $90.4 million on the HomeStreet merger.Non-recurring acquisition and integration costs of $63.9 million. Presentation of Results – HomeStreet Bank Merger On September 2, 2025, the merger of HomeStreet Bank, the wholly owned subsidiary of Mechanics Bancorp (formerly known as HomeStreet, Inc.) with and into Mechanics Bank, was completed. Mechanics Bank is the accounting acquirer (legal acquiree), HomeStreet Bank is the accounting acquiree and Mechanics Bancorp is the legal acquirer. Mechanics’ financial results for all periods ended prior to September 2, 2025 reflect Mechanics Bank’s historical financial results on a standalone basis. In addition, Mechanics’ reported financial results for the quarter and nine months ended September 30, 2025 reflect Mechanics Bank’s financial results on a standalone basis until the closing of the merger on September 2, 2025 and results of the combined company for September 2, 2025 through September 30, 2025. The number of shares issued and outstanding, earnings per share, and all references to share quantities or metrics of Mechanics have been retrospectively restated to reflect the equivalent number of shares issued in the merger since the merger was accounted for as a reverse acquisition. As the accounting acquirer, Mechanics Bank remeasured the identifiable assets acquired and liabilities assumed in the merger as of September 2, 2025 at their acquisition date fair values. The estimates of fair value were recorded based on initial valuations at the merger date. These estimates are considered preliminary as of September 30, 2025, are subject to change for up to one year after the merger date, and any changes could be material. INCOME STATEMENT HIGHLIGHTS Summary Income Statement Quarter Ended Nine Months Ended (in thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Total interest income $ 204,888 $ 178,153 $ 192,119 $ 556,626 $ 558,866 Total interest expense 59,218 48,024 61,149 152,373 168,097 Net interest income 145,670 130,129 130,970 404,253 390,769 Provision (reversal of provision) for credit losses on loans and leases 46,058 357 6,730 42,663 2,684 Provision (reversal of provision) for credit losses on unfunded lending commitments 960 (725 ) 13 329 517 Total provision (reversal of provision) for credit losses 47,018 (368 ) 6,743 42,992 3,201 Net gain (loss) on sale of investment securities 155 4,137 — 4,292 (207,203 ) Bargain purchase gain 90,363 — — 90,363 — Other noninterest income 19,260 15,488 16,904 49,729 49,548 Total noninterest income (loss) 109,778 19,625 16,904 144,384 (157,655 ) Acquisition and integration costs 63,869 5,639 — 69,858 — Other noninterest expense 99,460 85,441 85,651 270,189 261,410 Total noninterest expense 163,329 91,080 85,651 340,047 261,410 Income (loss) before provision for income tax expense 45,101 59,042 55,480 165,598 (31,497 ) Provision for income taxes (10,060 ) 16,557 15,536 24,161 (8,833 ) Net income (loss) $ 55,161 $ 42,485 $ 39,944 $ 141,437 $ (22,664 ) Net Interest Income Net interest income in the third quarter of 2025 was $15.5 million higher than the second quarter of 2025 primarily as a result of the merger with HomeStreet Bank in September 2025. Mechanics’ net interest margin decreased from 3.44% to 3.36%. The decrease in the net interest margin was primarily due to the deposits and long-term debt acquired from HomeStreet and non-recurring interest recoveries recognized in the second quarter. Nathan Duda, EVP and Chief Financial Officer of Mechanics, commented, “The legacy HomeStreet assets and liabilities have been fully marked to current market rates as of the merger date, which will provide accretion in interest income in addition to the contractual rates on the loans acquired.” Provision for Credit Losses The provision for credit losses in the third quarter of 2025, which consists of the provision for credit losses on loans and provision for unfunded commitments, was $47.0 million. The increase in provision for the third quarter of 2025 was primarily driven by reserves established on non-PCD acquired loans from HomeStreet and updates to ACL factors that were driven by a re-evaluation of future economic conditions and interest rate repricing risk. Noninterest Income Noninterest income in the third quarter of 2025 increased from the second quarter of 2025 primarily due to the bargain purchase gain of $90.4 million recognized on the HomeStreet merger. Nathan Duda added, “Bargain purchase gains are rare and only occur in unique circumstances. The bargain purchase gain reflects the fair value of the net assets acquired less the consideration paid.” Noninterest Expense Noninterest expense increased $72.2 million in the third quarter of 2025 compared to the second quarter of 2025, primarily due to non-recurring acquisition and integration related costs of $63.9 million and increases in salaries and employee benefits expense. C.J. Johnson said, “Mechanics has already incurred a significant amount of our estimated restructuring charges related to the merger and these one-time expenses will decrease materially moving forward.” Income Taxes Our effective tax rate during the third quarter of 2025 was (22.3)% as compared to 28.0% in the second quarter of 2025. The $90.4 million bargain purchase gain from the merger with HomeStreet was an after-tax item. Excluding the bargain purchase gain,we would have recorded a pre-tax loss of $45.3 million, which was the primary reason for the negative effective tax rate. BALANCE SHEET HIGHLIGHTS Selected Balance Sheet Items (in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Cash and cash equivalents $ 1,442,647 $ 2,078,960 $ 798,309 $ 999,711 $ 1,178,161 Trading securities 50,357 — — — — Securities available-for-sale 3,490,478 2,562,438 3,586,322 3,065,251 2,709,754 Securities held-to-maturity 1,363,636 1,391,211 1,416,914 1,440,494 1,464,775 Loans held for investment (before ACL) 14,568,795 9,239,834 9,416,024 9,643,497 9,924,444 Total assets 22,708,820 16,571,173 16,540,317 16,490,112 16,602,757 Noninterest-bearing demand deposits $ 6,748,479 $ 5,453,890 $ 5,495,994 $ 5,616,116 $ 5,595,703 Total deposits 19,452,819 13,968,863 13,986,226 13,941,804 14,108,506 Long-term debt 190,123 — — — 7,245 Total liabilities 19,934,686 14,154,556 14,166,227 14,188,244 14,303,493 Total shareholders’ equity 2,774,134 2,416,617 2,374,090 2,301,868 2,299,264 Investment Securities Trading securities totaled $50.4 million at September 30, 2025 and were acquired in the HomeStreet merger. Securities held-to-maturity decreased by $27.6 million in the third quarter and totaled $1.4 billion at September 30, 2025. Securities available-for-sale increased by $928.0 million during the third quarter to $3.5 billion at September 30, 2025. The net increase in investment securities was primarily due to securities acquired in the HomeStreet merger. Loans Total loans and leases at September 30, 2025 were $14.6 billion, up $5.3 billion from $9.2 billion at June 30, 2025, due primarily to the addition of $5.6 billion of legacy HomeStreet Bank loans recorded at fair value. Deposits Total deposits increased by $5.5 billion during the third quarter of 2025 to $19.5 billion at September 30, 2025, due primarily to balances acquired in the merger. Noninterest-bearing accounts totaled $6.7 billion and represented 35% of total deposits at September 30, 2025, compared to $5.5 billion, or 39% of total deposits, at June 30, 2025. Noninterest-bearing deposit balances increased in the quarter primarily due to balances acquired in the merger. Insured deposits of $12.8 billion represented 66% of total deposits at September 30, 2025, compared to insured deposits of $7.6 billion, or 55% of total deposits at June 30, 2025. Borrowings Total borrowings were $190.1 million at September 30, 2025, representing subordinated notes, senior notes and trust preferred debt acquired in the merger. Equity During the third quarter 2025, total shareholders’ equity increased by $357.5 million to $2.8 billion and tangible common equity (1) increased by $247.6 million to $1.8 billion at September 30, 2025. The increase in total shareholders’ equity for the third quarter resulted from Mechanics Bancorp shares issued as merger consideration, and net income in the third quarter of 2025. At September 30, 2025, book value per common share increased to $12.54, compared to $11.96 at June 30, 2025. The linked-quarter change in book value per share reflects Mechanics Bancorp shares issued as merger consideration. Tangible book value per common share (1) increased to $7.73, compared to $7.26 at June 30, 2025, mainly as a result of Mechanics Bancorp shares issued as merger consideration, combined with $108.3 million of intangibles added as part of the merger. (1) Non-GAAP measure. Refer to section “Non-GAAP Financial Measures and Reconciliations” below. CAPITAL AND LIQUIDITY Capital ratios remain strong with Total risk-based capital at 15.59% and a Tier 1 leverage ratio of 10.33% at September 30, 2025. The following table presents our regulatory capital ratios as of the dates indicated: September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Mechanics Bancorp(1),(2) Tier 1 leverage capital (to average assets) 10.33 % n/a n/a n/a n/a Common equity Tier 1 capital (to risk-weighted assets) 13.42 % n/a n/a n/a n/a Tier 1 risk-based capital (to risk-weighted assets) 13.42 % n/a n/a n/a n/a Total risk-based capital (to risk-weighted assets) 15.59 % n/a n/a n/a n/a Mechanics Bank(1) Tier 1 leverage capital (to average assets) 11.46 % 10.16 % 9.91 % 9.66 % 8.93 % Common equity Tier 1 capital (to risk-weighted assets) 14.87 % 18.27 % 16.89 % 16.14 % 15.29 % Tier 1 risk-based capital (to risk-weighted assets) 14.87 % 18.27 % 16.89 % 16.14 % 15.29 % Total risk-based capital (to risk-weighted assets) 16.13 % 19.10 % 17.77 % 17.14 % 16.42 % (1) On September 2, 2025, HomeStreet Bank merged with and into Mechanics Bank, with Mechanics Bank surviving the merger and becoming a wholly-owned subsidiary of Mechanics Bancorp. As a result, for periods prior to September 30, 2025, regulatory capital ratios are only presented for Mechanics Bank. (2) Regulatory capital ratios at September 30, 2025 are preliminary. At September 30, 2025, Mechanics had available borrowing capacity of $3.8 billion from the FHLB, $4.0 billion from the FRBSF and $5.3 billion under borrowing lines established with other financial institutions. Nathan Duda commented, “Mechanics Bank’s deposit base permits the Bank to be core funded without wholesale funding. We have already paid down the acquired HomeStreet FHLB advances, and our borrowing capacity with the FHLB will increase in the fourth quarter when the legacy HomeStreet loans are pledged.” CREDIT QUALITY Asset Quality Information and Ratios (dollars in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Delinquent loans held for investment: 30-89 days past due $ 55,883 $ 106,710 $ 100,225 $ 91,337 $ 107,460 90+ days past due 38,316 10,660 5,248 6,082 6,314 Total delinquent loans $ 94,199 $ 117,370 $ 105,473 $ 97,419 $ 113,774 Total delinquent loans to loans held for investment 0.65 % 1.27 % 1.12 % 1.01 % 1.15 % Nonperforming assets Nonaccrual loans $ 60,586 $ 18,606 $ 9,905 $ 10,693 $ 11,642 90+ days past due and accruing 2,653 717 211 211 214 Total nonperforming loans 63,239 19,323 10,116 10,904 11,856 Foreclosed assets 1,675 — 13,400 15,600 17,882 Total nonperforming assets $ 64,914 $ 19,323 $ 23,516 $ 26,504 $ 29,738 Allowance for credit losses on loans and leases $ 168,959 $ 68,334 $ 75,515 $ 88,558 $ 103,481 Allowance for credit losses on loans and leases to total loans and leases held for investment 1.16 % 0.74 % 0.80 % 0.92 % 1.04 % Allowance for credit losses on loans and leases to nonaccrual loans 278.88 % 367.27 % 762.38 % 828.22 % 888.88 % Nonaccrual loans to total loans and leases held for investment 0.42 % 0.20 % 0.11 % 0.11 % 0.12 % Nonperforming assets to total assets 0.29 % 0.12 % 0.14 % 0.16 % 0.18 % At September 30, 2025, total delinquent loans and leases were $94.2 million, compared to $117.4 million at June 30, 2025. The decrease was primarily due to decreases in the auto loan portfolio and loans that improved to current status during the third quarter. Total delinquent loans and leases as a percentage of total loans and leases declined to 0.65% at September 30, 2025, as compared to 1.27% at June 30, 2025. At September 30, 2025, nonperforming assets were $64.9 million, compared to $19.3 million at June 30, 2025. The increase was mostly due to nonperforming loans and leases and foreclosed assets acquired from legacy HomeStreet Bank. Nonperforming assets as a percentage of total assets increased to 0.29% at September 30, 2025 as compared to 0.12% at June 30, 2025. Allowance for Credit Losses Quarter Ended Nine Months Ended (dollars in thousands) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Allowance for credit losses on loans and leases: Beginning balance $ 68,334 $ 75,515 $ 108,021 $ 88,558 $ 133,778 Initial allowance on acquired PCD loans 63,494 — — 63,494 — Provision (reversal of provision) for credit losses 46,058 357 6,730 42,663 2,684 Loans charged off (12,803 ) (9,949 ) (14,572 ) (34,969 ) (46,034 ) Recoveries 3,876 2,411 3,302 9,213 13,053 Ending balance $ 168,959 $ 68,334 $ 103,481 $ 168,959 $ 103,481 Allowance for credit losses on unfunded lending commitments: Beginning balance $ 3,735 $ 4,460 $ 4,818 $ 4,366 $ 4,314 Initial allowance on acquired loans 3,736 — — 3,736 — Provision (reversal of provision) for credit losses 960 (725 ) 13 329 517 Ending balance $ 8,431 $ 3,735 $ 4,831 $ 8,431 $ 4,831 Net charge-offs to average loans(1) 0.32 % 0.32 % 0.45 % 0.35 % 0.43 % (1) Ratios are annualized. The allowance for credit losses on loans totaled $169.0 million, or 1.16% of total loans at September 30, 2025, compared to $68.3 million, or 0.74% of total loans at June 30, 2025. The increase in the allowance includes the addition of $63.5 million related to legacy HomeStreet Bank’s PCD loans booked at the merger’s close, which did not flow through the income statement. The ACL provision for the third quarter was $46.1 million, which includes an initial provision of $20.2 million for the acquired HomeStreet Bank’s non-PCD loans. Conference Call The Company will host a conference call and webcast to discuss its third quarter 2025 financial results at 11:00 a.m. Eastern Time (ET) on Friday, October 31, 2025. Investors and analysts interested in participating in the call are invited to dial 1-833-470-1428 (international callers please dial 1-646-844-6383) and use access code 320554 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available on the Company’s website at https://ir.mechanicsbank.com. The earnings presentation for the call will also be available on the Company’s Investor Relations website prior to the call. A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed through the News & Events tab of the Company’s website as well as by dialing 1-866-813-9403 (international callers please dial 1-929-458-6194). The pin to access the telephone replay is 352137. The replay will be available until 11:59 p.m. (Eastern Time) on November 7, 2025. About Mechanics Bancorp Mechanics Bancorp (NASDAQ: MCHB) is headquartered in Walnut Creek, Calif., and is the financial holding company of Mechanics Bank, a full-service bank with $22.7 billion in assets and 166 branches across California, Oregon, Washington and Hawaii. Founded in 1905 to help families, businesses and communities prosper, Mechanics Bank offers a wide range of products and services in consumer and business banking, commercial lending, cash management services, private banking, and comprehensive wealth management and trust services. Learn more at www.MechanicsBank.com. Cautionary Note The information contained herein is preliminary and based on Company data available at the time of this earnings release. It speaks only as of the particular date or dates included in the earnings release. Except as required by law, Mechanics does not undertake an obligation to, and disclaims any duty to, update any of the information herein. Forward-Looking Statements This earnings release, including information incorporated by reference herein, contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, contained or incorporated by reference in this earnings release, including statements regarding our plans, objectives, expectations, strategies, beliefs, or future performance or events, are forward-looking statements. Generally, forward-looking statements include the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “look,” “may,” “optimistic,” “plan,” “potential,” “projection,” “should,” “will,” and “would” and similar expressions (or the negative of these terms), although not all forward-looking statements contain these identifying words. These statements are subject to known and unknown risks, uncertainties, assumptions, estimates, and other important factors that change over time, many of which may be beyond our control. Our future performance and actual results may differ materially from those expressed or implied in such forward-looking statements. Forward-looking statements should not be relied upon as a prediction of actual results. We caution readers that actual results may differ materially from those expressed in or implied by the Company’s forward-looking statements. Other important factors could affect the Company’s future results from those expressed or implied in any forward-looking statements include, but are not limited to: the ability to achieve expected cost savings, synergies and other financial benefits from the merger within the expected time frames and costs or difficulties relating to integration matters being greater than expected;the diversion of management time from core banking functions due to integration-related matters;changes in the interest rate environment and in expectation of reduction in short-term interest rates;changes in the U.S. and global economies, including business disruptions, reductions in employment, inflationary pressures and an increase in business failures, specifically among our customers, and global trade disputes, including the imposition of tariffs by the U.S. and countermeasures by foreign governments;our ability to control operating costs and expenses;our ability to attract and retain key members of our senior management team;changes in deposit flows, loan demand or real estate values may adversely affect our business;increases in competitive pressure among financial institutions or from non-financial institutions;our ability to obtain regulatory approvals or non-objection to take various capital actions, including the payment of dividends by us or the Bank;our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses and impact the adequacy of our allowance for credit losses;changes in accounting principles, policies or guidelines may cause our financial condition to be perceived or interpreted differently;legislative or regulatory changes that may adversely affect our business or financial condition, including, without limitation, changes in corporate and/or individual income tax laws and policies, changes in privacy laws, and changes in regulatory capital or other rules, and the availability of resources to address or respond to such changes;general economic conditions, either nationally or locally in some or all areas in which we conduct business, or conditions in the securities markets or banking industry;technological changes may be more difficult or more expensive than what we anticipate;a failure in or breach of our operational or security systems or information technology infrastructure, or those of our third-party providers and vendors, including due to cyber-attacks;success or consummation of new business initiatives may be more difficult or expensive than what we anticipate;staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; andthe potential for litigation, investigations or other matters before regulatory agencies. A discussion of the factors, risks and uncertainties that could affect our financial results, business goals and operational and financial objectives is also contained in the Risk Factors included on Exhibit 99.2 to the Company’s Current Report on Form 8-K, filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 2, 2025. We strongly recommend readers review those disclosures in conjunction with the discussions herein. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements in this earnings release are based on management’s expectations at the time such statements are made and speak only as of the date made. The Company does not assume any obligation or undertake to update any forward-looking statements after the date of this earnings release as a result of new information, future events or developments, except as required by federal securities or other applicable laws, although the Company may do so from time to time. All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share data) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 ASSETS Cash and cash equivalents $ 1,442,647 $ 2,078,960 $ 798,309 $ 999,711 $ 1,178,161 Trading securities 50,357 — — — — Securities available-for-sale 3,490,478 2,562,438 3,586,322 3,065,251 2,709,754 Securities held-to-maturity 1,363,636 1,391,211 1,416,914 1,440,494 1,464,775 Loans held for sale 54,985 415 219 543 504 Loan and lease receivables 14,568,795 9,239,834 9,416,024 9,643,497 9,924,444 Allowance for credit losses on loans and leases (168,959 ) (68,334 ) (75,515 ) (88,558 ) (103,481 ) Net loan and lease receivables 14,399,836 9,171,500 9,340,509 9,554,939 9,820,963 Mortgage servicing rights 88,595 — — — — Other real estate owned 1,675 — 13,400 15,600 17,882 Federal Home Loan Bank stock, at cost 17,294 17,250 17,250 17,250 17,250 Premises and equipment, net 143,917 114,715 115,509 117,362 117,291 Bank-owned life insurance 169,163 84,786 84,300 83,741 83,968 Goodwill 843,305 843,305 843,305 843,305 843,305 Other intangible assets, net 143,264 33,309 35,975 38,744 41,491 Right-of-use asset 85,657 56,696 56,268 53,545 55,263 Interest receivable and other assets 414,011 216,588 232,037 259,627 252,150 TOTAL ASSETS $ 22,708,820 $ 16,571,173 $ 16,540,317 $ 16,490,112 $ 16,602,757 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES Noninterest-bearing demand deposits $ 6,748,479 $ 5,453,890 $ 5,495,994 $ 5,616,116 $ 5,595,703 Interest-bearing transaction accounts 7,918,670 6,359,590 6,357,909 6,138,909 6,193,735 Savings and time deposits 4,785,670 2,155,383 2,132,323 2,186,779 2,319,068 Total deposits 19,452,819 13,968,863 13,986,226 13,941,804 14,108,506 Long-term debt 190,123 — — — 7,245 Operating lease liability 90,796 59,233 58,914 56,094 57,785 Interest payable and other liabilities 200,948 126,460 121,087 190,346 129,957 TOTAL LIABILITIES 19,934,686 14,154,556 14,166,227 14,188,244 14,303,493 SHAREHOLDERS’ EQUITY Common stock 2,401,989 2,122,374 2,122,117 2,122,117 2,122,117 Retained earnings 380,954 325,793 283,308 239,517 187,854 Accumulated other comprehensive income (loss), net of tax (8,809 ) (31,550 ) (31,335 ) (59,766 ) (10,707 ) TOTAL SHAREHOLDERS’ EQUITY 2,774,134 2,416,617 2,374,090 2,301,868 2,299,264 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 22,708,820 $ 16,571,173 $ 16,540,317 $ 16,490,112 $ 16,602,757 Common shares outstanding-Class A and B 221,203,135 202,015,832 201,999,328 201,999,328 201,999,328 CONSOLIDATED INCOME STATEMENTS (UNAUDITED) Quarter Ended Nine Months Ended (in thousands, except share and per share data) September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 INTEREST INCOME Loans and leases interest and fees $ 141,773 $ 120,116 $ 130,830 $ 379,681 $ 404,010 Investment securities 40,266 42,013 37,060 129,864 91,238 Interest-bearing cash and other 22,849 16,024 24,229 47,081 63,618 Total interest income 204,888 178,153 192,119 556,626 558,866 INTEREST EXPENSE Deposits 57,496 48,024 52,408 150,651 140,859 Borrowed funds 124 — 8,607 124 26,428 Long-term debt 1,598 — 134 1,598 810 Total interest expense 59,218 48,024 61,149 152,373 168,097 Net interest income 145,670 130,129 130,970 404,253 390,769 Provision (reversal of provision) for credit losses on loans and leases 46,058 357 6,730 42,663 2,684 Provision (reversal of provision) for credit losses on unfunded lending commitments 960 (725 ) 13 329 517 Net interest income after provision for credit losses 98,652 130,497 124,227 361,261 387,568 NONINTEREST INCOME Service charges on deposit accounts 5,875 5,492 6,007 16,861 17,854 Trust fees and commissions 3,117 3,216 3,176 9,452 8,841 ATM network fee income 3,425 3,040 3,109 9,353 9,084 Loan servicing income 680 168 202 1,025 786 Net gain (loss) on sale of investment securities 155 4,137 — 4,292 (207,203 ) Income from bank-owned life insurance 2,120 502 1,010 3,149 2,144 Bargain purchase gain 90,363 — — 90,363 — Other 4,043 3,070 3,400 9,889 10,839 Total noninterest income (loss) 109,778 19,625 16,904 144,384 (157,655 ) NONINTEREST EXPENSE Salaries and employee benefits 54,168 47,734 47,072 150,753 147,717 Occupancy 9,566 8,337 8,028 25,875 24,113 Equipment 7,288 6,288 5,807 19,445 17,643 Professional services 5,560 5,907 7,091 16,383 15,398 FDIC assessments and regulatory fees 2,722 2,213 2,917 7,148 8,679 Amortization of intangible assets 4,251 2,666 3,302 9,655 10,705 Data processing 3,315 2,200 2,294 6,865 6,734 Loan related 4,439 3,220 1,577 9,236 5,416 Marketing and advertising 680 744 963 2,008 2,603 Other real estate owned related (103 ) 104 201 2,685 1,888 Acquisition and integration costs 63,869 5,639 — 69,858 — Other 7,574 6,028 6,399 20,136 20,514 Total noninterest expense 163,329 91,080 85,651 340,047 261,410 Income (loss) before provision for income tax expense 45,101 59,042 55,480 165,598 (31,497 ) PROVISION FOR INCOME TAXES (10,060 ) 16,557 15,536 24,161 (8,833 ) NET INCOME (LOSS) $ 55,161 $ 42,485 $ 39,944 $ 141,437 $ (22,664 ) Basic earnings per share Class A common stock $ 0.25 $ 0.20 $ 0.19 $ 0.66 $ (0.11 ) Class B common stock $ 2.53 $ 2.00 1.88 $ 6.60 $ (1.07 ) Diluted earnings per share Class A common stock $ 0.25 $ 0.20 $ 0.19 $ 0.66 $ (0.11 ) Class B common stock $ 2.53 $ 2.00 $ 1.88 $ 6.60 $ (1.07 ) Basic weighted-average shares outstanding Class A common stock 207,189,764 200,893,223 200,884,880 203,012,384 200,876,688 Class B common stock 1,114,448 1,114,448 1,114,448 1,114,448 1,114,448 Diluted weighted-average shares outstanding Class A common stock 207,277,786 200,952,643 200,977,311 203,081,443 200,988,925 Class B common stock 1,114,448 1,114,448 1,114,448 1,114,448 1,114,448 LOANS HELD FOR INVESTMENT (in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Commercial and industrial $ 547,311 $ 280,551 $ 352,267 $ 410,040 $ 416,407 Commercial real estate Multifamily 5,448,374 2,826,750 2,833,328 2,794,581 2,808,199 Non-owner occupied 1,864,040 1,551,617 1,618,001 1,657,597 1,713,472 Owner occupied 709,239 323,419 341,446 360,100 367,111 Construction and land development 535,776 135,013 119,089 104,430 108,965 Residential real estate 3,907,101 2,438,271 2,336,268 2,280,963 2,221,038 Auto 954,615 1,147,967 1,363,084 1,596,935 1,841,062 Other consumer 602,339 536,246 452,541 438,851 448,190 Total LHFI $ 14,568,795 $ 9,239,834 $ 9,416,024 $ 9,643,497 $ 9,924,444 COMPOSITION OF DEPOSITS (in thousands) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Deposits by product: Noninterest-bearing demand deposits $ 6,748,479 $ 5,453,890 $ 5,495,994 $ 5,616,116 $ 5,595,703 Interest-bearing: Interest-bearing demand deposits 1,733,215 1,331,785 1,384,081 1,435,266 1,417,938 Savings 1,398,430 1,173,943 1,201,988 1,216,900 1,247,408 Money market 6,185,455 5,027,805 4,973,828 4,703,643 4,775,797 Certificates of deposit 3,387,240 981,440 930,335 969,879 1,071,660 Total interest-bearing deposits 12,704,340 8,514,973 8,490,232 8,325,688 8,512,803 Total deposits $ 19,452,819 $ 13,968,863 $ 13,986,226 $ 13,941,804 $ 14,108,506 SUMMARY FINANCIAL DATA Quarter Ended Nine Months Ended September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Select Performance Ratios: Return on average equity(1) 8.61 % 7.15 % 6.99 % 7.81 % (1.35 )% Return on average tangible equity(1), (2) 14.17 % 11.82 % 12.13 % 12.96 % (1.48 )% Return on average assets(1) 1.18 % 1.03 % 0.92 % 1.10 % (0.18 )% Efficiency ratio 63.9 % 60.8 % 57.9 % 62.0 % 112.1 % Efficiency ratio (non-GAAP)(2) 62.3 % 59.0 % 55.7 % 60.2 % 107.6 % Net interest margin (1) 3.36 % 3.44 % 3.28 % 3.41 % 3.29 % As of September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Other data: Book value per share $ 12.54 $ 11.96 $ 11.75 $ 11.40 $ 11.38 Tangible book value per share (2) $ 7.73 $ 7.26 $ 7.05 $ 6.70 $ 6.67 Common equity ratio 12.22 % 14.58 % 14.35 % 13.96 % 13.85 % Tangible common equity ratio(2) 8.23 % 9.81 % 9.54 % 9.10 % 9.00 % Loans to deposit ratio 74.89 % 66.15 % 67.32 % 69.17 % 70.34 % Full time equivalent employees 2,036 1,303 1,426 1,439 1,432 (1) Ratios are annualized. (2) Return on average tangible equity, efficiency ratio, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. For a reconciliation of these measures to the comparable GAAP financial measure or the computation of the measure, see “Non-GAAP Financial Measures and Reconciliations” below. NET INTEREST MARGIN Quarter Ended September 30, 2025 June 30, 2025 September 30, 2024 (dollars in thousands) Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Assets: Interest-earning assets: Cash and cash equivalents $ 1,851,414 $ 19,858 4.26 % $ 1,390,355 $ 14,668 4.23 % $ 1,691,753 $ 22,020 5.18 % Investment securities 4,248,163 40,266 3.76 % 4,342,666 42,013 3.88 % 4,040,510 37,060 3.65 % Loans(1) 10,959,795 141,773 5.13 % 9,337,910 120,116 5.16 % 10,032,238 130,830 5.19 % FHLB Stock and other investments 119,880 2,991 9.90 % 103,468 1,356 5.26 % 100,150 2,209 8.77 % Total interest-earning assets 17,179,252 204,888 4.73 % 15,174,399 178,153 4.71 % 15,864,651 192,119 4.82 % Noninterest-earning assets 1,418,197 1,294,772 $ 1,322,435 Total assets $ 18,597,449 $ 16,469,171 $ 17,187,086 Liabilities and shareholders’ equity: Interest-bearing liabilities: Interest-bearing deposits: Demand deposits $ 1,480,835 $ 1,196 0.32 % $ 1,344,397 $ 1,045 0.31 % 1,444,564 2,631 0.72 % Money market and savings 6,701,690 42,382 2.51 % 6,231,772 40,956 2.64 % 5,990,216 41,913 2.78 % Certificates of deposit 1,758,659 13,918 3.14 % 960,431 6,023 2.52 % 1,055,430 7,864 2.96 % Total 9,941,184 57,496 2.29 % 8,536,600 48,024 2.26 % 8,490,210 52,408 2.46 % Borrowings: Borrowings 10,939 124 4.48 % 13 0 4.61 % 717,395 8,607 4.77 % Long-term debt 63,034 1,598 10.06 % — — — % 9,941 134 5.34 % Total interest-bearing liabilities 10,015,157 59,218 2.35 % 8,536,613 48,024 2.26 % 9,217,546 61,149 2.64 % Noninterest-bearing liabilities: Demand deposits (2) 5,823,539 5,355,287 5,480,808 Other liabilities 216,836 193,089 214,422 Total liabilities 16,055,532 14,084,989 14,912,776 Shareholders’ equity 2,541,917 2,384,182 2,274,310 Total liabilities and shareholders’ equity $ 18,597,449 $ 16,469,171 $ 17,187,086 Net interest income $ 145,670 $ 130,129 $ 130,970 Net interest rate spread 2.38 % 2.45 % 2.18 % Net interest margin 3.36 % 3.44 % 3.28 % (1) Includes loans held for sale. (2) Cost of all deposits, including noninterest-bearing demand deposits, was 1.45%, 1.39% and 1.49% for the quarters ended September 30, 2025, June 30, 2025 and September 30, 2024, respectively. Nine Months Ended September 30, 2025 September 30, 2024 (dollars in thousands) Average Balance Interest Average Yield/Cost Average Balance Interest Average Yield/Cost Assets: Interest-earning assets: Cash and cash equivalents $ 1,329,525 $ 41,713 4.19 % $ 1,525,600 $ 59,315 5.19 % Investment securities 4,455,585 129,864 3.90 % 3,914,358 91,238 3.11 % Loans(1) 9,935,183 379,681 5.11 % 10,312,101 404,010 5.23 % FHLB Stock and other investments 108,261 5,368 6.63 % 102,545 4,303 5.61 % Total interest-earning assets 15,828,554 556,626 4.70 % 15,854,604 558,866 4.71 % Noninterest-earning assets 1,338,126 1,340,551 Total assets $ 17,166,680 $ 17,195,155 Liabilities and shareholders’ equity: Interest-bearing liabilities: Interest-bearing deposits: Demand deposits $ 1,409,713 $ 3,539 0.34 % $ 1,503,080 $ 7,602 0.68 % Money market and savings 6,330,840 121,478 2.57 % 5,775,423 111,971 2.59 % Certificates of deposit 1,222,456 25,634 2.80 % 1,021,633 21,286 2.78 % Total 8,963,009 150,651 2.25 % 8,300,136 140,859 2.27 % Borrowings: Borrowings 3,691 124 4.48 % 739,058 26,428 4.78 % Long-term debt 21,242 1,598 10.06 % 19,927 810 5.43 % Total interest-bearing liabilities 8,987,942 152,373 2.27 % 9,059,121 168,097 2.48 % Noninterest-bearing liabilities: Demand deposits (2) 5,541,719 5,687,029 Other liabilities 215,971 207,811 Total liabilities 14,745,632 14,953,961 Shareholders’ equity 2,421,048 2,241,194 Total liabilities and shareholders’ equity $ 17,166,680 $ 17,195,155 Net interest income $ 404,253 $ 390,769 Net interest spread 2.43 % 2.23 % Net interest margin 3.41 % 3.29 % (1) Includes loans held for sale. (2) Cost of deposits including noninterest-bearing deposits, was 1.39% and 1.35% for the nine months ended September 30, 2025 and 2024, respectively. NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS This document contains non-GAAP financial measures of our financial performance, including return on average tangible equity, efficiency ratio, tangible book value per share and tangible common equity ratio. We believe that these non-GAAP financial measures provide useful information because they are used by management to evaluate our operating performance, without the impact of goodwill and other intangible assets. However, these financial measures are not intended to be considered in isolation of or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should be viewed in addition to, and not as an alternative to, its GAAP results. The non-GAAP financial measures Mechanics presents may differ from similarly captioned measures presented by other companies. (in thousands, except shares and per share data) Quarter Ended Nine Months Ended Return on Average Equity and Return on Average Tangible Equity Ref. September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net income (loss) (a) $ 55,161 $ 42,485 $ 39,944 $ 141,437 $ (22,664 ) Add: intangibles amortization, net of tax(1) 3,040 1,906 2,361 6,904 7,654 Net income (loss), excluding the impact of intangible amortization, net of tax (b) $ 58,201 $ 44,391 $ 42,305 $ 148,341 $ (15,010 ) Average shareholders’ equity (c) $ 2,541,917 $ 2,384,182 $ 2,274,310 $ 2,421,048 $ 2,241,194 Less: average goodwill and other intangible assets 912,679 878,190 886,389 890,677 890,120 Average tangible shareholders' equity (d) $ 1,629,238 $ 1,505,992 $ 1,387,921 $ 1,530,371 $ 1,351,074 Return on average equity (2) (a) / (c) 8.61 % 7.15 % 6.99 % 7.81 % (1.35 )% Return on average tangible equity (non-GAAP) (2) (b) / (d) 14.17 % 11.82 % 12.13 % 12.96 % (1.48 )% (1) Effective tax rate of 28.5% used in computations above. (2) Ratios are annualized. Quarter Ended Nine Months Ended Efficiency Ratio September 30, 2025 June 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Noninterest expense (e) $ 163,329 $ 91,080 $ 85,651 $ 340,047 $ 261,410 Less: intangibles amortization 4,251 2,666 3,302 9,655 10,705 Noninterest expense, excluding the impact of intangible amortization (f) 159,078 88,414 82,349 330,392 250,705 Net interest income (g) 145,670 130,129 130,970 404,253 390,769 Noninterest income (loss) (h) 109,778 19,625 16,904 144,384 (157,655 ) Efficiency ratio (e) / (g+h) 63.9 % 60.8 % 57.9 % 62.0 % 112.1 % Efficiency ratio (non-GAAP) (f) / (g+h) 62.3 % 59.0 % 55.7 % 60.2 % 107.6 % As of Book Value per Share and Tangible Book Value per Share September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Total shareholders’ equity (i) $ 2,774,134 $ 2,416,617 $ 2,374,090 $ 2,301,868 $ 2,299,264 Less: goodwill and other intangible assets 986,569 876,614 879,280 882,049 884,796 Total tangible shareholders’ equity (j) $ 1,787,565 $ 1,540,003 $ 1,494,810 $ 1,419,819 $ 1,414,468 Common shares outstanding-Class A and B (k) 221,203,135 202,015,832 201,999,328 201,999,328 201,999,328 Common shares outstanding-Class A 220,088,687 200,901,384 200,884,880 200,884,880 200,884,880 Common shares outstanding-Class B-adjusted 11,144,480 11,144,480 11,144,480 11,144,480 11,144,480 Shares outstanding at period end-adjusted(3) (l) 231,233,167 212,045,864 212,029,360 212,029,360 212,029,360 Book value per share (i) / (k) $ 12.54 $ 11.96 $ 11.75 $ 11.40 $ 11.38 Tangible book value per share (non-GAAP) (j) / (l) $ 7.73 $ 7.26 $ 7.05 $ 6.70 $ 6.67 (3) Includes 11,144,480 Class A Shares issuable upon the conversion of 1,114,448 Class B Shares outstanding. Class B Shares also are treated as if such share had been converted into ten Class A Shares for purposes of calculating the economic rights of the Class B Shares, including upon liquidation of the Company or the declaration of dividends or distributions by the Company. As of Common Equity Ratio and Tangible Common Equity Ratio September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Total shareholders’ equity (m) $ 2,774,134 $ 2,416,617 $ 2,374,090 $ 2,301,868 $ 2,299,264 Less: goodwill and other intangible assets 986,569 876,614 879,280 882,049 884,796 Total tangible shareholders’ equity (n) $ 1,787,565 $ 1,540,003 $ 1,494,810 $ 1,419,819 $ 1,414,468 Total assets (o) $ 22,708,820 $ 16,571,173 $ 16,540,317 $ 16,490,112 $ 16,602,757 Less: goodwill and other intangible assets 986,569 876,614 879,280 882,049 884,796 Total tangible assets (p) $ 21,722,251 $ 15,694,559 $ 15,661,037 $ 15,608,063 $ 15,717,961 Common equity ratio (m) / (o) 12.22 % 14.58 % 14.35 % 13.96 % 13.85 % Tangible common equity ratio (non-GAAP) (n) / (p) 8.23 % 9.81 % 9.54 % 9.10 % 9.00 % Investor Relations Inquiries: Mechanics Bancorp Nathan Duda Executive Vice President and Chief Financial Officer [email protected] Source: Mechanics Bancorp