What happened
According to a Securities and Exchange Commission (SEC) filing dated November 3, 2025 (link), boutique investment company Acuitas Investments, LLC initiated a new position in Mechanics Bancorp (MCHB 1.79%), purchasing 105,281 shares during Q3 2025.
The estimated transaction value, based on the period’s average share price, was approximately $5.10 million. The addition brings Acuitas Investments' total 13F-reported equity holdings to 52 positions.
What else to know
This new position represented 3.28% of Acuitas Investments' $155.77 million U.S. equity portfolio.
Top holdings after the filing:
- NYSE:SEI: $7.31 million (4.7% of AUM)
- NASDAQ:AOSL: $6.74 million (4.3% of AUM)
- NYSE:MG: $6.33 million (4.1% of AUM)
- NYSE:NGS: $6.07 million (3.9% of AUM)
- NASDAQ:ANGO: $5.57 million (3.6% of AUM)
As of October 31, 2025, shares of Mechanics Bancorp were priced at $13.39, up 43.4% over the past year, outperforming the S&P 500 by 23.9 percentage points.
Mechanics Bancorp reported revenue of $586.19 million and net income of $186.08 million for the trailing twelve months ended Sept. 30, 2025.
The position in Mechanics Bancorp is outside the fund’s top five holdings.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $586.19 million |
| Net income (TTM) | $186.08 million |
| Price (as of market close October 31, 2025) | $13.39 |
| 1-year price change | 43.4% |
Company snapshot
Mechanics Bancorp is a regional financial institution with approximately $586.19 in trailing twelve-month revenue as of Sept. 30, 2025, and a significant presence in California's key economic centers. The company leverages a diversified product portfolio and a strong branch network to serve a broad client base, focusing on both retail and commercial banking solutions.
Mechanics offers a full suite of financial services, including checking and savings accounts, consumer and commercial loans, equipment financing, cash management, wealth management, and digital banking solutions. It serves individual consumers, small businesses, and middle-market enterprises across California, with a branch network concentrated in major metropolitan and regional markets.
The company is headquartered in Walnut Creek, California, and operates through 166 branch locations in key economic centers across the state.
Foolish take
The Mechanics Bancorp stake that Acuitas Investments initiated is noteworthy because the new investment immediately shot to within the fund's top 10 holdings. This suggests Acuitas Investments has a bullish outlook towards Mechanics.
It's easy to see why. Mechanics completed the acquisition of HomeStreet Bank on Sept. 2, making it a larger player in the regional banking sector. It boasted $22.7 billion in total assets at the end of the third quarter, up $6.1 billion from Q2.
In addition, the company's financials look excellent after it reported Q3 earnings results. Net income was $55.2 million, a substantial increase from 2024's $39.9 million. Its Q3 balance sheet was strong with $1.4 billion in cash and equivalents versus total long-term debt of $190.1 million.
Mechanics claims to have one of the highest quality deposit franchises in the U.S. with an average deposit size of $43,000 and average customer tenure of 18 years. Given Mechanics Bancorp's many attractive attributes, it's no wonder Acuitas initiated a large stake in the financial institution. Mechanics looks like a solid long-term investment.
Glossary
Position: An investment or holding in a particular security or asset by an individual or institution.
Stake: The proportion of ownership or interest an investor holds in a company or fund.
Portfolio: A collection of financial assets, such as stocks, bonds, or funds, owned by an investor or institution.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a financial institution or fund manager.
13F-reported: Refers to holdings disclosed in SEC Form 13F, which institutional investment managers must file quarterly.
Trailing twelve-month (TTM): The 12-month period ending with the most recent quarterly report.
Net loss: When a company's total expenses exceed its total revenues over a specific period.
Equity holdings: Investments in company shares or stocks held by an individual or institution.
Branch network: The group of physical bank locations operated by a financial institution.
Commercial loans: Loans provided by banks to businesses, typically for operational or capital needs.
Cash management: Services that help businesses manage their daily cash flow, payments, and liquidity.
Wealth management: Financial advisory services that provide investment, estate, and retirement planning for individuals or institutions.
