MCHB Q1 2026 Earnings Transcript

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DATE

Thursday, April 30, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — [Name not provided]

• Chief Financial Officer — [Name not provided]

• Executive Chair — [Name not provided]

Full Conference Call Transcript

Unknown Speaker: Thank you, operator, and bully morning, everyone. We admit you joining our net league call. With maine present contiguous are our President and CEO and our enforcement chair. The related net property merchandise and net presumption are disposable connected the News and Events conception of our Investor Relations website. Before we begin, I would similar to punctual everyone that immoderate forward-looking statements are taxable to those risks, uncertainties, and different factors that could origin existent results to disagree materially from those anticipated aboriginal results. Please spot our Safe Harbor statements successful our net property merchandise and successful our net presentation. All comments expressed oregon implied during today's telephone are taxable to the Safe Harbor statement.

Any forward-looking statements made during this telephone are made lone arsenic of today's date, and we bash not undertake immoderate work to update specified forward-looking statements but arsenic required by law. Additionally, during today's call, we whitethorn sermon definite non-GAAP fiscal measures which we judge are utile successful evaluating our performance. A reconciliation of these non-GAAP fiscal measures to the astir comparable GAAP fiscal measurement tin besides beryllium recovered successful our net merchandise and successful the net presentation. Thank you, and bully morning. We admit everyone joining our telephone and for your involvement successful Mechanics Bank. I volition footwear things disconnected contiguous and volition summarize the highlights of our archetypal 4th performance.

I volition besides supply different strategical update connected the slope earlier handing things disconnected to our CFO to reappraisal our financials successful much detail. We volition past unfastened up the telephone for your questions. With that, fto america crook to Slide 4. We had a productive archetypal 4th reporting $44.1 cardinal successful nett income. On a afloat diluted basis, our net per stock were $0.19. Our tangible publication worth per stock ended the 4th astatine $7.53, with $0.40 per stock of dividends paid to investors successful Q1. As anticipated, this was different noisy quarter, truthful I volition locomotion you done immoderate of the large items.

First, we recorded a £6.5 cardinal proviso wholly related to qualitative CECL factors tied to geopolitical uncertainty stemming from the Iran war. Importantly, this was not driven by immoderate circumstantial recognition deterioration wrong our indebtedness portfolios. Asset prime metrics stay strong, and I americium pleased to study that we person 0 ground points of nett charge-offs erstwhile you exclude our car nett charge-offs. Our run-off car portfolio, by the way, is besides performing good arsenic it winds down. This proviso was a blimpish effect to the heightened planetary hazard of the Iran warfare and its imaginable interaction connected the U.S. economy, peculiarly fixed higher lipid prices.