Mechanics Bancorp to sell Fannie Mae DUS business to Fifth Third for ~$130M cash

Mechanics Bancorp

Purchase price ~$130M cash, subject to adjustment for changes in fair value of mortgage servicing rights.
Acquired portfolio includes ~$1.8B in DUS servicing rights and associated escrow deposits.
Closing expected Q1 2026, conditioned on Fannie Mae's approval of Fifth Third as authorized DUS lender.
Mechanics Bank employees operating the DUS business will be hired by Fifth Third.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Mechanics Bancorp entered into Agreement with Fifth Third Bank, National Association valued at approximately $130 million (effective 2025-12-03).

Action: entry
Agreement: asset purchase
Counterparty: Fifth Third Bank, National Association
Value: approximately $130 million
Effective: 2025-12-03

Exact text from the filing

On December 3, 2025, Mechanics Bank (“Mechanics Bank”), a wholly-owned subsidiary of Mechanics Bancorp (the “Company”) and Fifth Third Bank, National Association (“Fifth Third”), a wholly-owned, indirect subsidiary of Fifth Third Bancorp, entered into an asset purchase agreement (the “Agreement”), pursuant to and subject to the terms and conditions of which Mechanics Bank has agreed to sell, and Fifth Third has agreed to purchase, Mechanics Bank’s Fannie Mae Delegated Underwriting and Servicing (“DUS”) business line (the “Transactions”) for cash consideration.

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Mechanics Bancorp filing history →

Source: SEC EDGAR

accession 0001140361-25-045033

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