What is Mechanics Bank's Shariah compliance score?

Mechanics Bank (MCHB) has a Shariah compliance score of 0/100 (Grade: F, Non-Compliant). AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%.

Does Mechanics Bank pass AAOIFI screening?

Mechanics Bank (MCHB) does not pass AAOIFI Shariah screening. AAOIFI Standard No. 21 requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30%, (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. MCHB's debt-to-market-cap is 4.1%.

How much purification is needed for Mechanics Bank?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the percentage and amount for Mechanics Bank (MCHB) using the latest financial data.

Where can I screen Mechanics Bank for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Mechanics Bank (MCHB) and 8,200+ securities. US-listed stocks and ETFs are screened under AAOIFI Standard No. 21. Bursa Malaysia securities carry the Securities Commission Malaysia's official status. Coins are screened separately, under published scholarly opinion. The verdict is free, with no credit card or signup required for basic screening. The compliance grade, score, and debt ratio are free too; the full ratio breakdown is part of Pro.

MCHBNot HalalF

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Compliance Status

Not Halal

Screened on Oct 18, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Mechanics Bank (MCHB) halal? Not Halal. Based on AAOIFI screening, Mechanics Bank has involvement in prohibited business activities with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Mechanics Bank (MCHB) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 18, 2026. Source: https://halalscreener.app/en/stock/MCHB

AvoidBorderlineClean

Business activity

Involved in prohibited business activities.

Failed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

4.1% of 30.0% limit

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The verdict above is final and free.

Pro members can verify every number behind it: interest-bearing deposits, prohibited income breakdown, and the full AAOIFI math.

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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding MCHB

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

MCHB: Is Mechanics Bank Halal?

Mechanics Bank

NASDAQFinancial ServicesUS

$14.35

Market Cap: 3.2B

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About Mechanics Bank

Mechanics Bank delivers a comprehensive suite of financial solutions, catering to the diverse needs of individual clients and small to mid-sized businesses. Its foundational offerings include a variety of checking and savings accounts. Beyond core deposit services, the bank provides an extensive portfolio of lending options, encompassing personal loans for homes and automobiles, various business financing such as term loans, lines of credit, equipment financing, and Small Business Administration (SBA) loans. It also specializes in multi-family, commercial, and owner-occupied real estate lending. The institution further supports its clients with credit and debit cards, sophisticated payable and receivable solutions, robust fraud prevention, and comprehensive cash management services. For businesses, it delivers merchant and payroll services, Paycheck Protection Program (PPP) solutions, and workplace benefit plans. Additional specialized services span foreign currency exchange, cashier's checks, wire transfers, overdraft protection, deposit and treasury services, alongside sophisticated wealth management offerings like trust and estate planning, investment and asset management, and retirement planning. Convenience is enhanced through its online and mobile banking platforms. The bank operates an extensive network of 115 branch locations strategically positioned across key Californian regions, including the Greater San Francisco, Sacramento, Los Angeles, and San Diego areas, as well as the Central Valley. Established in 1905, Mechanics Bank is headquartered in Walnut Creek, California.

Sector: Financial Services · Industry: Banks - Regional

Why this does not pass

Business activity: the company earns from an activity AAOIFI treats as prohibited.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 18, 2026

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Business Activity Screen

Failed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Prohibited industry: Banks - Regional

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR

Halal Alternatives in Financial Services

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

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$51.51

PSLVA+

Sprott Physical Silver Trust

$18.48

PHYSA+

Sprott Physical Gold Trust

$31.50

CEFA+

Sprott Physical Gold and Silver Trust

$40.45

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Frequently Asked Questions

Is Mechanics Bank (MCHB) halal to invest in?

Mechanics Bank (MCHB) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Mechanics Bank get a F compliance rating?

Mechanics Bank (MCHB) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 4.1% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Mechanics Bank's Shariah verdict?

Mechanics Bank's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Mechanics Bank re-screened for Shariah compliance?

Mechanics Bank (MCHB) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 18, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.