Mechanics Bank sells $417M auto loan portfolio to BofA

Mechanics Bancorp has sold a $417 million portfolio of performing indirect auto loans to Bank of America's trading desk, according to a press release. The transaction, which took effect on August 31, 2026, occurred at a price close to the loans' book value. Mechanics Bank retained around $13 million of the auto loans to be serviced by Westlake Portfolio Management for both Bank of America and itself.

C.J. Johnson, the bank's President and CEO, stated that the sale is part of the company's strategy to optimize its balance sheet, allocate capital, reduce risk, improve liquidity, and increase future profitability. Mechanics Bancorp, headquartered in Walnut Creek, California, manages $21.2 billion in assets and operates 166 branches in California, Oregon, Washington, and Hawaii.