Mechanics Bancorp in Walnut Creek, Calif., has sold a portfolio of performing indirect auto loans to Bank of America’s trading desk.
The $21.2 billion-asset Mechanics said in a press release that it sold about $417 million of loans at a price near book value. The bank will retain about $13 million of runoff auto loans.
Westlake Portfolio Management will continue to service the auto loans for Bank of America and Mechanics.
“This transaction represents another important step in our ongoing efforts to optimize our balance sheet and allocate capital to its highest and best use,” C.J. Johnson, Mechanics’ president and CEO, said in the release. “The sale of the substantial majority of our runoff auto loans will reduce risk, improve liquidity and enhance the future profitability of our company.”