Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 382

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 382
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 Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. In cases where the carrying amount exceeds the fair value, less cost to sell, an impairment loss is recognized. Management also considers inputs regarding market trends or other relevant factors and selling and commission costs. As of the years ended December 31, 2024 and 2023, the fair value of other real estate owned as presented in the Consolidated Balance Sheets was $15.6 million and $17.0 million, respectively. Other real estate owned assets fall under a level 3 fair value measurement methodology. For the years ended December 31, 2024 and 2023, there were no collateral dependent loans with specific allowance allocations of the allowance for credit losses, which are measured for impairment using the fair value of the collateral for collateral dependent loans. The following is a summary of the estimated fair value and carrying value of the Bank’s financial instruments as of December 31, 2024 and 2023 and the methods and assumptions used to evaluate them:

|                                       |     | December 31, 2024 |     |            |     | December 31, 2023 |     |            |
|:--------------------------------------|:----|------------------:|:----|-----------:|:----|------------------:|:----|-----------:|
| (in thousands)                        |     |         Estimated 
        Fair Value |     |   Carrying 
      Value |     |         Estimated 
        Fair Value |     |   Carrying 
      Value |
| Assets:                               |     |                   |     |            |     |                   |     |            |
| Cash and cash equivalents             |     |          $999,711 |     |   $999,711 |     |        $1,457,569 |     | $1,457,569 |
| Securities available-for-sale         |     |         3,065,251 |     |  3,065,251 |     |         2,343,173 |     |  2,343,173 |
| Securities held-to-maturity           |     |         1,196,000 |     |  1,440,494 |     |         1,309,249 |     |  1,542