Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 65

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 65
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 57,397 (6,059) 57,397 Municipal bonds (73) 7,489 (47,780) 364,775 (47,853) 372,264 Corporate debt securities — — (7,098) 28,513 (7,098) 28,513 U.S. Treasury securities — — (2,474) 20,184 (2,474) 20,184 Agency debentures (135) 42,897 (1,167) 11,003 (1,302) 53,900 Total $ (579) $ 135,407 $ (115,685) $ 1,055,874 $ (116,264) $ 1,191,281 HTM Municipal bonds $ — $ — $ (40) $ 2,331 $ (40) $ 2,331 The Company has evaluated AFS securities in an unrealized loss position and has determined that the decline in value is temporary and is related to the change in market interest rates since purchase. The decline in value is not related to any issuer- or industry-specific credit event. The Company has not identified any expected credit losses on its debt securities as of December 31, 2024 and 2023. The Company bases this conclusion in part on its periodic review of the credit ratings of the AFS securities or reviews of the financial condition of the issuers. In addition, as of December 31, 2024 and 2023, the Company had 52

not made a decision to sell any of its debt securities held, nor did the Company consider it more likely than not that it would be required to sell such securities before recovery of their amortized cost basis. The following tables present the fair value of investment securities AFS and HTM by contractual maturity along with the associated contractual yield. At December 31, 2024 Within one year After one year through five years After five years through ten years After ten years Total (dollars in thousands) Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield Fair Value Weighted Average Yield AFS Municipal bonds $ — — % $ 15,531 3.88 % $ 70,678 2.92 % $ 292,050 2.93 % $ 378,259 2.97 % Corporate debt securities — — % 2,735 2.08 % 22,209 4.