Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 364

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 364
---
 to fulfill these commitments through 2032.

F-35

TABLE OF CONTENTS

During the years ended December 31, 2024, 2023 and 2022, the Bank recognized amortization expense of $3.4 million, $3.5 million and $3.8 million, respectively, which were included within Provision for Income Tax on the Consolidated Income Statements. In 2023, the Bank had two investment terminations that occurred and the Bank recognized a tax loss (and related benefit) on the terminations. The tax benefit of $1.8 million was added to the expected credits of $3.4 million for a total benefit of $5.2 million. The Bank’s outstanding portfolio of other Community Reinvestment Act (CRA) Investments as of December 31, 2024 and 2023 was $55.9 million and $59.4 million, respectively. The majority of these CRA investments represent investments in small to mid-sized businesses throughout California. The Bank accounts for these CRA investments using the proportional amortization method of accounting and these CRA investments are reflected in Interest Receivable and Other Assets on the Consolidated Balance Sheets. During the years ended December 31, 2024, 2023 and 2022, the Bank recognized dividend income of $2.8 million, $2.9 million and $4.9 million, respectively, which were included within Other Interest Income in the Consolidated Income Statements. NOTE 10 – INCOME TAXES The components of the provision for income taxes for the years ended December 31, 2024, 2023 and 2022 are as follows:

| (in thousands)                               |     |        Year Ended 
 December 31, 2024 |     |        Year Ended 
 December 31, 2023 |     |        Year Ended 
 December 31, 2022 |
|:---------------------------------------------|:----|------------------:|:----|------------------:|:----|------------------:|
| Federal:                                     |     |                   |     |                   |     |                   |
| Current                                      |     |          $(2,314) |     |           $41,669 |     |           $57,107 |
| Deferred                                     |     |             7,096 |     |             8,329 |     |              -207 |
| Total Federal                                |     |             4,782 |     |            49,998 |     |            56,