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Mechanics Bancorp sells $417M in performing indirect auto loans to Bank of America
MCHBMechanics Bancorp
Mechanics Bancorp completed the sale of approximately $417 million in remaining performing indirect auto loans from its subsidiary Mechanics Bank to Bank of America’s trading desk. The transaction occurred on September 16, 2026, with a cutoff date of August 31, 2026, and was executed at a price near book value. Mechanics Bank will retain approximately $13 million of runoff auto loans, which will continue to be serviced by Westlake Portfolio Management. The company stated the sale aims to optimize its balance sheet, reduce risk, improve liquidity, and enhance future profitability. Mechanics Bancorp is a financial holding company operating Mechanics Bank, a full-service FDIC-insured bank providing consumer and business banking services.