Bank of America purchases $417 million in auto loan portfolio from Mechanics Bank

Bank of America's trading desk acquired approximately $417 million of performing indirect auto loans from Mechanics Bank, the subsidiary of Mechanics Bancorp, priced near book value with an August 31, 2026 cutoff date. The transaction represents Mechanics Bank's remaining portfolio of such loans and allows the regional bank to exit the auto lending business while Westlake Portfolio Management continues to service the acquired loans. The sale was completed on September 16, 2026.

1. Bank of America acquired approximately $417 million in performing indirect auto loans from Mechanics Bank on September 16, 2026
2. The auto loan portfolio was sold at a price near book value with a cutoff date of August 31, 2026
3. The sale represents substantially all of Mechanics Bank's remaining performing auto loan portfolio
4. Mechanics Bank retained approximately $13 million of runoff auto loans
5. Westlake Portfolio Management continues to service the auto loans