The Bancorp(US:TBBK) Businesswire·2026-01-30 10:45Core Insights - Mechanics Bancorp reported strong financial results for Q4 and the full year 2025, significantly influenced by the merger with HomeStreet Bank, which was completed on September 2, 2025 [1][4][10] Financial Performance - Q4 2025 net income was $124.3 million, or $0.54 per diluted share, compared to $55.2 million, or $0.25 per diluted share in Q3 2025 [1][8] - Full year 2025 net income reached $265.7 million, or $1.22 per diluted share, a substantial increase from $29.0 million, or $0.14 per diluted share in 2024 [1][8] - Total interest income for Q4 2025 was $255.1 million, up from $204.9 million in Q3 2025, while total interest expense increased to $73.7 million from $59.2 million [6][9] Balance Sheet Highlights - Total assets were $22.4 billion as of December 31, 2025, compared to $22.7 billion at September 30, 2025, and $16.5 billion at December 31, 2024 [7][20] - Total loans amounted to $14.2 billion, with a loans-to-deposits ratio of 75% [7][22] - Total deposits were $19.0 billion, down from $19.5 billion at the end of Q3 2025 [7][23] Capital and Liquidity - The company reported strong capital ratios, including a 16.28% total risk-based capital ratio and a 14.07% CET1 capital ratio as of December 31, 2025 [7][28] - Total shareholders' equity increased to $2.9 billion, with book value per share rising to $12.93 [26][27] Credit Quality - The allowance for credit losses on loans was $153.3 million, or 1.08% of total loans, down from 1.16% at the end of Q3 2025 [34][32] - Total delinquent loans were $93.1 million, representing 0.66% of total loans held for investment [31][32] Noninterest Income and Expenses - Noninterest income for Q4 2025 was $78.5 million, a decrease from $109.8 million in Q3 2025, primarily due to a lower bargain purchase gain from the HomeStreet merger [8][13] - Noninterest expense decreased to $129.5 million in Q4 2025 from $163.3 million in Q3 2025, largely due to reduced acquisition and integration costs [8][15]