Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 162

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 162
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 necessary to qualify as a well-capitalized depository institution under the prompt corrective action regulations. In addition to the minimum capital ratios, Mechanics is required to maintain a capital conservation buffer consisting of additional Common Equity Tier 1 Capital which is at least 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses. Mechanics maintained capital ratios necessary to satisfy the capital conservation buffer requirements as of the dates indicated. At December 31, 2024, the capital conservation buffer for Mechanics was 9.14%. The Federal Deposit Insurance Corporation and the State of California Department of Financial Protection and Innovation regulate Mechanics. California banking laws limit each cash dividends to the lesser of retained earnings or net income for the last three years, net of any distributions made to shareholders during such period. At December 31, 2024, retained earnings was $240 million, net income for the last three years was $447 million, and distribution made to shareholders during the last three years was $436 million, leaving a dividend distribution limit of $11 million. Mechanics paid cash dividends in 2024 of $1,648 per share. The amount and declaration of future cash dividends are subject to approval by the Mechanics Board and certain statutory requirements and regulatory restrictions. We had no material commitments for capital expenditures as of December 31, 2024. Summary Financial Data for the Fiscal Quarters Ended March 31, 2025, December 31, 2024 and March 31, 2024

| (in thousands, except shares, per share and FTE data)       |     |  Quarter Ended 
 March 31, 2025 |     | December 31, 2024 |     | March 31, 2024 |
|:------------------------------------------------------------|:----|---------------:|:----|------------------:|:----|---------------:|
| Select Income Statement data:                               |     |                |     |                   |     |                |
| Net interest income                                         |     |       $128,454 |     |          $128,400 |     |       $121,777 |
| Reversal of provision for credit losses on loans and leases |     |         -3,752 |     |            -4,243 |     |           -596 |
| Noninterest income (loss)                                   |     |         14,981 |     |            18,535 |     |       -191,033 |
| Noninterest expense