•our ability to manage risks and challenges relating to the development and use of artificial intelligence;
Sees AI as a riskDetail: GeneralNew this year
Mechanics Bancorp
MCHB · CA · Mid-size bank ($1B to $50B)
Total assets of FDIC-insured bank subsidiaries: $22.4B at the end of 2025
Filings on the SEC website · This bank on Bankgraph
In short. In its 2025 annual report, Mechanics Bancorp mentions AI in 14 passages. It lists AI as a risk, but the report does not say how AI is controlled. Compared with banks of its size, it gives more detail than most.
In the 2025 annual reportThe yearly report a listed company files with the SEC, called a 10-K. It describes the business, its risks and its results.
Mentions AI
Yes
14 passages
Highest detail levelHow specific a passage is about AI at this bank. General: could be in any bank's report. Names an area: says where AI is used or how it is controlled. Concrete example: names a tool or vendor, gives a number, a date or a result.
Names an area
What it says
Sees AI as a risk; General statement about AI
Kinds of AI named
Process automation, Generative AI
How AI is controlled
Not described
AI in its annual reports over time
- What this shows
- How many passages about AI each annual report contains, 2022 to 2025, by what they say.
- What it means
- 0 passages in 2022, 14 passages in 2025.
- How to read it
- Each bar is a report year, split by what the passages say. Hover or tap a bar for the count.
- Where it comes from
- Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
Show as a table
| Report year | Using or planning AI | Explains how AI is controlled | Sees AI as a risk | Other mentions |
|---|---|---|---|---|
| 2022 | ||||
| 2022 | ||||
| 2022 | ||||
| 2022 | ||||
| 2023 | ||||
| 2023 | ||||
| 2023 | ||||
| 2023 | ||||
| 2024 | ||||
| 2024 | ||||
| 2024 | ||||
| 2024 | ||||
| 2025 | ||||
| 2025 | ||||
| 2025 | ||||
| 2025 |
Compared with banks of its size
- What this shows
- This bank's 2025 annual report next to all 221 banks of its size ($1B to $50B).
- What it means
- Its most specific passage is "Names an area"; for banks of its size the typical level is "General".
- How to read it
- Yes or no for this bank; the share of banks of the same size for comparison.
- Where it comes from
- Banks' annual reports (10-K) filed with the SEC, up to 6 Oct 2026. How we did this
| In the 2025 report | This bank | Banks of its size |
|---|---|---|
| Using AI now | No | 26 of 221 (12%) |
| Explains how AI is controlled | No | 55 of 221 (25%) |
| Sees AI as a risk | Yes | 184 of 221 (83%) |
| Mentions generative AI | Yes | 112 of 221 (51%) |
| Mentions AI agents | No | 18 of 221 (8%) |
What changed from 2024
14 passages new in the 2025 report, 1 passage from the 2024 report no longer there. The most specific passage is more detailed than last year.
Every passage about AI
- What this shows
- All 16 passages about AI in this bank's annual reports, quarterly reports and earnings materials since 2023, newest first.
- What it means
- 0 passages say the bank is using AI now.
- How to read it
- Highlighted words are the terms that matched. Labels show what each passage says. Follow the link to read it in the filing.
- Where it comes from
- Banks' annual reports (10-K), quarterly reports (10-Q) and earnings materials (8-K) filed with the SEC. How we did this
Annual report, report year 2025 filed 17 Mar 2026
including the rise of artificial intelligence and automation, have lowered the barriers to entry for financial technology
General statement about AIDetail: GeneralProcess automationNew this year
including the rise of artificial intelligence and automation, have lowered the barriers to entry for financial technology
Sees AI as a riskDetail: GeneralProcess automationNew this year
technologies and the increased use of artificial intelligence and automation by third parties further increase the risk of
Sees AI as a riskDetail: GeneralProcess automationNew this year
technology-driven products and services, including increased usage of artificial intelligence and automation. Many of our
Sees AI as a riskDetail: GeneralProcess automationNew this year
The development and use of artificial intelligence presents risk and challenges that may adversely impact our business.
Sees AI as a riskDetail: GeneralNew this year
We use artificial intelligence on a limited basis. The use of artificial intelligence may result in reputational harm or
Sees AI as a riskDetail: Names an areaNew this year
liability, or could otherwise adversely affect our business. Artificial intelligence, including generative artificial intelligence,
Sees AI as a riskDetail: GeneralGenerative AINew this year
many developing technologies, artificial intelligence presents risks and challenges that could affect its further development,
Sees AI as a riskDetail: GeneralNew this year
adoption, and use, and therefore our business. Artificial intelligence algorithms may be flawed. Datasets may contain
Sees AI as a riskDetail: GeneralNew this year
acceptance of artificial intelligence solutions and result in burdensome new regulations. If the analyses that products
Sees AI as a riskDetail: GeneralNew this year
incorporating artificial intelligence assist in producing for us or our third-party partners are deficient, biased or inaccurate,
Sees AI as a riskDetail: GeneralNew this year
intelligence may also present ethical issues. If we or our third-party partners offer artificial intelligence enabled products
Sees AI as a riskDetail: GeneralNew this year
governments will continue to assess and implement new laws and regulations concerning the use of artificial intelligence,
Sees AI as a riskDetail: GeneralNew this year
Annual report, report year 2024 filed 7 Mar 2025
We face pricing competition for loans and deposits, both in pricing and products, as well as in customer service and convenience. Our most direct competition comes from other banks, credit unions, mortgage banking companies and finance companies. Competition has also come from companies that rely heavily on technology to provide financial services, are moving to provide cryptocurrency products and offerings, and often target a younger customer demographic. The significant competition in attracting and retaining deposits and making loans, as well as in providing other financial services, throughout our market area may impact future earnings and growth. Our success depends, in part, on our ability to adapt products and services to evolving industry standards and customer preferences and trends and provide consistent customer service while keeping costs in line. We sometimes experience increasing pressure to provide products and services at lower prices, which could reduce net interest income and noninterest income from fee-based products and services. New technology-driven products and services are often introduced and adopted, including innovative ways that customers can make payments, access products and manage accounts. We could be required to make substantial capital expenditures to modify or adapt existing products and services or develop new products and services. We may not be successful in introducing new products and services or those new products may not achieve market acceptance. In addition, advances in technology such as artificial intelligence products and services, telephone, text and online banking, e-commerce and self-service automatic teller machines and other equipment, as well as changing customer preferences to access our products and services through digital channels, could decrease the value of our branch network and other assets. As a result of these competitive pressures, our business, financial condition, results of operations and capital position may be adversely affected.
Sees AI as a riskDetail: GeneralNew this year
Annual report, report year 2023 filed 29 Apr 2024
Ms. Harrell joined the Board in January 2022. From 2001 until her retirement in October 2021 as Senior Director, USA AI, Sustainability & Market Development Strategy at Microsoft Corporation, Ms. Harrell held various executive positions with Microsoft where she led teams in the sales, marketing and services disciplines focused on enterprise, public sector and original equipment manufacturing customers and partners. Ms. Harrell has served as a Regent for the University of Washington since 2009. Prior to joining Microsoft in 2001, Ms. Harrell was President and Chief Executive Officer of the United Way of King County, Washington and held various positions with US West Communications, Inc. and AT&T, Inc. Ms. Harrell holds a bachelor of arts degree in communications-advertising and a masters of business administration in marketing from the University of Washington.
Standard wording or passing mentionDetail: GeneralNew this year
7 passages in legal noticesThe forward-looking statements notice at the start or end of a filing. It often lists AI among many risks. It is never counted., not counted
•our ability to manage risks and challenges relating to the development and use of artificial intelligence;
Same as last period
The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events; failure to realize the anticipated benefits of the HomeStreet merger; our ability to effectively manage our expanded operations; negative developments and events impacting the financial services industry; the soundness of other financial institutions; our ability to maintain sufficient liquidity, or an increase in the cost of liquidity; unpredictable economic, market and business conditions; interest rate risk, and fluctuations in interest rates; inflationary pressures and rising prices; adverse changes in real estate market values; the impact of climate change, including indirectly through impacts on our customers; the adequacy of our allowances for credit losses for loans and debt securities; incurring losses in our loan portfolio despite strict adherence to our underwriting practices; fluctuations in our mortgage origination business based upon seasonal and other factors; our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn; the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans; the ability of our small- to medium-sized borrowers to weather adverse business developments; our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk; our ability to mitigate our exposure to interest rate risk; negative publicity regarding us, or financial institutions in general; environmental liability risk associated with our lending activities; our ability to manage risks associated with new lines of business, products, product enhancements and services; our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers; our ability to develop, implement and maintain an effective system of internal control over financial reporting; the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements; the potential that we may write off goodwill and other intangible assets resulting from business combinations; dependence on our management team; exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors; legal claims and litigation, including potential securities law liabilities; employee class action lawsuits or other legal proceedings; our ability to raise additional capital, if needed; competition from other financial institutions and financial service companies; regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities; extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income; our ability to comply with stringent capital requirements; the impact of federal and state regulators’ examination of our business; our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations; our reliance on dividends from Mechanics Bank; our ability to raise debt or capital to pay off our debts upon maturity; our level of indebtedness following the completion of the HomeStreet merger; increasing and continually evolving cybersecurity and other technological risks; our ability to adapt to rapid technological change; our ability to effectively implement new technological solutions or enhancements to existing systems or platforms; our ability to manage risks and challenges relating to the development and use of artificial intelligence; our dependence on our computer and communications systems; our ability to effectively manage and aggregate data; Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval; we are a “controlled company” within the meaning of the rules of Nasdaq, and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards; future sales of shares by existing shareholders could cause our stock price to decline; our reliance on certain entities affiliated with the Ford Financial Funds for services; reduced disclosure requirements as a smaller reporting company; and certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock.
Same as last periodNew since the annual report
•our ability to manage risks and challenges relating to the development and use of artificial intelligence;
Same as last period
•our ability to manage risks and challenges relating to the development and use of artificial intelligence;
New this period
The following factors, among others, could cause actual results to differ materially from those set forth in the forward-looking statements: substantial non-recurring and integration costs, which may be greater than anticipated due to unexpected events; failure to realize the anticipated benefits of the HomeStreet merger; our ability to effectively manage our expanded operations; negative developments and events impacting the financial services industry; the soundness of other financial institutions; our ability to maintain sufficient liquidity, or an increase in the cost of liquidity; unpredictable economic, market and business conditions; interest rate risk, and fluctuations in interest rates; inflationary pressures and rising prices; adverse changes in real estate market values; the impact of climate change, including indirectly through impacts on our customers; the adequacy of our allowances for credit losses for loans and debt securities; incurring losses in our loan portfolio despite strict adherence to our underwriting practices; fluctuations in our mortgage origination business based upon seasonal and other factors; our geographic concentration, which may magnify the adverse effects and consequences of any regional or local economic downturn; the accuracy of independent appraisals to determine the value of the real estate that secures a substantial portion of our loans; the ability of our small- to medium-sized borrowers to weather adverse business developments; our ability to fully identify and mitigate exposure to the various risks that we face, including interest rate, credit, liquidity and market risk; our ability to mitigate our exposure to interest rate risk; negative publicity regarding us, or financial institutions in general; environmental liability risk associated with our lending activities; our ability to manage risks associated with new lines of business, products, product enhancements and services; our ability to adapt our services to changes in the marketplace related to mortgage servicing or origination, technology or in changes in the requirements of governmental authorities and customers; our ability to develop, implement and maintain an effective system of internal control over financial reporting; the potential that we may identify material weaknesses in our internal control over financial reporting in the future, which may result in material misstatements of our financial statements; the potential that we may write off goodwill and other intangible assets resulting from business combinations; dependence on our management team; exposure to fraudulent and negligent acts by our customers and the parties they do business with, as well as from employees, contractors and vendors; legal claims and litigation, including potential securities law liabilities; employee class action lawsuits or other legal proceedings; our ability to raise additional capital, if needed; competition from other financial institutions and financial service companies; regulatory restrictions that may delay, impede or prohibit our ability to consider certain acquisitions and opportunities; extensive supervision and regulation that could restrict our activities and impose financial requirements or limitations on the conduct of our business and limit our ability to generate income; our ability to comply with stringent capital requirements; the impact of federal and state regulators’ examination of our business; our ability to comply with the Bank Secrecy Act and other anti-money laundering statutes and regulations; our reliance on dividends from Mechanics Bank; our ability to raise debt or capital to pay off our debts upon maturity; our level of indebtedness following the completion of the HomeStreet merger; increasing and continually evolving cybersecurity and other technological risks; our ability to adapt to rapid technological change; our ability to effectively implement new technological solutions or enhancements to existing systems or platforms; our ability to manage risks and challenges relating to the development and use of artificial intelligence; our dependence on our computer and communications systems; our ability to effectively manage and aggregate data; Ford Financial Funds and their controlled affiliates control approximately 77% of the voting power of Mechanics, and have the ability to elect all of our directors and control most other matters submitted to our shareholders for approval; we are a “controlled company” within the meaning of the rules of Nasdaq, and, as a result, we qualify for, and rely on, exemptions from certain corporate governance standards; future sales of shares by existing shareholders could cause our stock price to decline; our reliance on certain entities affiliated with the Ford Financial Funds for services; reduced disclosure requirements as a smaller reporting company; and certain of our shareholders have registration rights, the exercise of which could adversely affect the trading price of our common stock.
New this periodNew since the annual report
97 22 45 215 163 54 197 103 52 228 191 138 205 192 183 70 97 131 0 32 96 51 63 80 Mechanics Bancorp Strategic Update 5 ➢ We successfully converted all Legacy HomeStreet customers onto our core banking platform the final week of March ➢ Major milestone achieved thanks to a tremendous amount of planning and hard work from all our employees ➢ We will substantially complete our merger integration during the second quarter and expect to realize significant additional expense synergies moving forward (for example, we will not be paying two core providers, other redundant contracts will be terminated, and final staffing reductions can occur now that we are on a single core) ➢ We remain on track to deliver on our initial costs savings estimate of $82mm (~43% of Legacy HomeStreet’s 2024 NIE) and expect ~$430mm run-rate NIE (excluding CDI amortization) for Mechanics by Q4’26 ➢ Legacy HomeStreet CD runoff has been greater than initially anticipated and is now expected to be ~$1.4bn by the end of Q2’26 vs. ~$1.0bn original expectation; Legacy HomeStreet core deposit attrition has been minimal ➢ The $130mm sale of our Fannie Mae DUS business line to Fifth Third is now expected to close in the second quarter ➢ Specialized division focused on multifamily lending and servicing under the Fannie Mae DUS program with 23 employees, $1.8bn serviced for others and $26.0mm MSR as of 3/31/2026 ➢ The combination of earnings, a smaller balance sheet and the pending DUS business line sale creates significant excess capital, and we expect to pay a ~$0.70 per share dividend in Q2 (subject to regulatory and Board approval) ➢ Merger integration work is almost behind us and the buildouts of our Wealth, Commercial Banking and Treasury Sales teams are substantially complete. We are working to grow each of our core business lines across our West Coast footprint with a technology roadmap that is increasingly focused on leveraging AI tools to improve productivity ➢ We expect a relatively flat NIM for the next 2-3 quarters as auto loan runoff remains a drag. Our deposit costs will also flatten out as we no longer assume any Fed rate cuts. Our NIM should begin expanding again in early 2027 as the impact of auto fades, driven by Legacy Mechanics Bank earning asset repricing ➢ We project a ~17-18% ROATCE and ~1.3-1.4% ROAA in 2027 and beyond; $275 – $300mm of 2027E GAAP net income ➢ Lower earnings primarily due to (i) no rate cuts assumed vs. two cuts previously; (ii) ~$400mm lower high-cost CD balances; and (iii) ~$200mm lower construction balances
New this periodNew since the annual report
•our ability to manage risks and challenges relating to the development and use of artificial intelligence;
New this period