Mechanics Bank sells most remaining indirect auto loans to Bank of America

Mechanics Bank ($MCHB) completed the sale of approximately $417 million of performing indirect auto loans to Bank of America ($BAC). The transaction removes the substantial majority of Mechanics’ runoff auto portfolio, leaving roughly $13 million of residual loans. The sale was completed near the portfolio’s book value, rather than generating a disclosed gain equal to the balance transferred.

Westlake will continue servicing the sold loans as well as the residual portfolio retained by Mechanics. The announcement marks further withdrawal from a runoff lending business and a transfer of assets between banks; it is not an acquisition of Mechanics Bank itself. The headline figure represents loan balances, not sales revenue. For Bank of America, the update confirms a portfolio purchase rather than a newly announced branch expansion or change to financial guidance.

Sources:

• Mechanics Bank — auto-loan portfolio sale, company release reprint