Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 97

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 97
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 decreases in the level of deposits that consumer and commercial customers and potential customers choose to maintain with Mechanics. Negative public opinion could result from actual or alleged conduct in any number of activities or circumstances, including: lending or foreclosure practices; sales practices; corporate governance and potential conflicts of interest; ethical failures or fraud, including alleged deceptive or unfair lending or pricing practices; regulatory compliance; protection of customer information; cyberattacks, whether actual, threatened, or perceived; negative news about Mechanics or the financial institutions industry generally; general company performance; or actions taken by government regulators and community organizations in response to such activities or circumstances. Furthermore, Mechanics’ failure to address, or the perception that Mechanics has failed to address, these issues appropriately could impact Mechanics’ ability to keep and attract customers and/or employees and could expose Mechanics to litigation and/or regulatory action, which could have an adverse effect on Mechanics’ business and results of operations. If Mechanics, or its relationships with certain customers, vendors or suppliers, became the subject of negative publicity, then Mechanics’ ability to attract and retain customers and employees, and Mechanics’ financial condition and results of operations, could be adversely impacted.

**Mechanics is subject to legal claims and litigation, including potential securities law liabilities, any of which could have a material adverse effect on its business.**

Mechanics faces legal risks in each aspect of its business, and the volume of legal claims and amount of damages and penalties claimed in litigation and regulatory proceedings against financial service companies remains high. These risks often are difficult to assess or quantify, and their existence and magnitude often remain unknown for

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substantial periods of time. Substantial legal liability or significant regulatory action against Mechanics could have a material adverse effect on its results of operations or cause significant reputational harm to Mechanics, which could seriously harm its business and prospects. Further, regulatory inquiries and subpoenas, other requests for information, or testimony in connection with litigation may require incurrence of significant expenses, including fees for legal representation and fees associated with document production. These costs may be incurred even if Mechanics is not a target of the inquiry or a party to the litigation. Any financial liability or reputational damage could have a material adverse effect on Mechanics’ business, which, in turn, could have a material adverse effect on Mechanics’ financial condition and results of operations.

**Mechanics may need to raise additional capital, but additional capital may not be available.**

Mechanics may need to raise additional capital, in the