Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 376

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 376
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, the Bank pledges marketable securities as collateral for its public deposits in quantities of not less than 110% of the Bank’s deposit obligations for these public funds. The Bank had $1.4 billion and $1.1 billion pledged as collateral as of December 31, 2024 and 2023, respectively. The Bank accepts deposits from its Investment Management and Trust Department for the benefit of certain trust customers. In accordance with state trust regulations, the Bank is required to secure any trust deposits that are in excess of the $250,000 FDIC insurance limits by pledging marketable securities equal to those excess deposit balances. As of December 31, 2024 and 2023, the Bank held trust deposits of $820 thousand and $1.5 million, respectively, that were in excess of $250,000 and which required securities collateralization. NOTE 18 – BORROWINGS ARRANGEMENTS Federal Home Loan Bank (FHLB) Advances The Bank did not have any FHLB Advances as of December 31, 2024 and 2023.

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TABLE OF CONTENTS

As of December 31, 2024 and 2023, the Bank’s investment in capital stock of the FHLB of San Francisco totaled $17.3 million. The Bank had $6.5 billion of loans pledged to the FHLB, which permits up to $3.8 billion of additional borrowing capacity as of December 31, 2024. Subordinated Debentures The Bank had no subordinated debentures outstanding as of December 31, 2024. As of December 31, 2023, the Bank had $25.0 million of subordinated debentures (net of unamortized discount) outstanding, respectively, at a fixed coupon rate of 5.25% with an investment grade rating, resulting in $862 thousand of interest expense for the year ended December 31, 2024, and $1.4 million for the years ended December 31, 2023 and 2022. The subordinated debentures at December 31, 2024 and 2023 consisted of the following:

| (in thousands)          |     | December 31, 2024 |     |          |     | December 31, 2023 |     |          |
|:------------------------|:----|:------------------|:----|:---------|:----|------------------:|: