Mechanics Bank sells $417M auto loan portfolio to BofA

Mechanics Bancorp announced the sale of its $417 million performing indirect auto loan portfolio to Bank of America's trading desk. The transaction, completed on August 31, 2026, was priced near book value, with Mechanics Bank retaining approximately $13 million of runoff auto loans. Westlake Portfolio Management will continue servicing the loans for both parties.

The sale aims to optimize Mechanics Bancorp's balance sheet, improve liquidity, and enhance future profitability. The company, headquartered in California, reported $21.2 billion in assets as of June 30, 2026, and operates 166 branches across the western United States.

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