Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 100

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 100
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 bank holding companies, they can often operate with greater flexibility and lower cost structures. This competition could result in the loss of customer deposits and brokerage accounts and lower mortgage originations, which could have a material adverse effect on Mechanics’ financial condition and results of operations.

**Regulatory restrictions may delay, impede or prohibit Mechanics’ ability to consider certain acquisitions and opportunities.**

Acquisitions by financial institutions are subject to approval by a variety of federal and state regulatory agencies. The process for obtaining these required regulatory approvals has become substantially more difficult in recent years. Regulatory approvals could be delayed, impeded, restrictively conditioned or denied due to existing or new regulatory issues Mechanics has, or may have, with regulatory agencies, including, without limitation, issues related to the Bank Holding Company Act, the Bank Merger Act, Bank Secrecy Act compliance, Community Reinvestment Act issues, fair lending laws, fair housing laws, consumer protection laws, unfair, deceptive, or abusive acts or practices regulations and other similar laws and regulations. Mechanics may fail to pursue, evaluate or complete strategic and competitively significant acquisition opportunities as a result of its inability, or perceived or anticipated inability, to obtain regulatory approvals in a timely manner, under reasonable conditions or at all. Difficulties associated with potential acquisitions that may result from these factors could have a material adverse effect on Mechanics’ business, financial condition and results of operations.

**Mechanics is subject to extensive supervision and regulation that could restrict its activities and impose financial requirements or limitations on the conduct of its business and limit its ability to generate income.**

Banks are highly regulated under federal and state law. As such, Mechanics is subject to extensive regulation, supervision and legal requirements from government agencies such as the Federal Reserve, the FDIC and the CDFPI, which govern almost all aspects of Mechanics’ operations. Compliance with laws and regulations can be difficult and costly, and changes to laws and regulations often impose additional operating costs. Mechanics’ failure to comply with these laws and regulations could subject Mechanics to restrictions on its business activities, enforcement actions and fines and other penalties, any of which could adversely affect Mechanics’ results of operations, regulatory capital levels and the price of its common stock.

Banking regulations are primarily intended to protect depositors’ funds, federal deposit insurance funds and the banking system as a whole, not stockholders or other debt holders. These regulations affect Mechanics’ lending practices, capital structure, capital requirements, investment practices, brokerage and investment advisory activities, dividends and growth, among other things. Failure to comply with