Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 119

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 119
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 the specific reserves for a syndicated commercial loan by $3.9 million based on updated analysis of the collateral support for this loan.

Management considers the current level of the ACL to be appropriate to cover estimated lifetime losses within our LHFI portfolio. The following table presents the ACL by product type:

 At March 31, 2025At December 31, 2024(dollars in thousands)AmountRate (1)AmountRate (1)CRENon-owner occupied CRE$1,658 0.30 %$1,739 0.30 %Multifamily13,287 0.45 %14,909 0.50 %Construction/land developmentMultifamily construction468 0.72 %849 0.86 %CRE construction73 0.66 %66 0.60 %Single family construction5,704 1.74 %6,737 2.10 %Single family construction to permanent140 0.45 %184 0.44 %Total 21,330 0.55 %24,484 0.61 %Commercial and industrial loansOwner occupied CRE598 0.18 %576 0.16 %Commercial business10,648 3.61 %6,886 2.23 %Total 11,246 1.77 %7,462 1.12 %Consumer loansSingle family3,702 0.37 %3,610 0.35 %Home equity and other3,356 0.80 %3,187 0.77 %Total 7,058 0.50 %6,797 0.47 %Total ACL $39,634 0.66 %$38,743 0.63 %

(1)   The ACL rate is calculated excluding balances related to loans that are insured by the FHA or guaranteed by the VA or SBA.

Liquidity and Sources of Funds

Liquidity risk management is primarily intended to ensure we are able to maintain sources of cash to adequately fund operations and meet our obligations, including demands from depositors, draws on lines of credit and paying any creditors, on a timely and cost-effective basis, in various market conditions. Our liquidity profile is influenced by changes in market conditions, the composition of the balance sheet and risk tolerance levels. The Company has established liquidity guidelines and operating plans that detail the sources and