Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 63

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 7
Chunk 63
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 For 2023, cash of $349 million was used in financing activities primarily due to decreases in deposits and dividends paid on our common stock, partially offset by a net increase in long-term and short-term borrowings. 

Capital Resources and Dividends

The capital rules applicable to United States based bank holding companies and federally insured depository institutions ("Capital Rules") require the Company (on a consolidated basis) and the Bank (on a stand-alone basis) to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. In addition, prompt corrective action regulations place a federally insured depository institution, such as the Bank, into one of five capital categories on the basis of its capital ratios: (i) well capitalized; (ii) adequately capitalized; (iii) undercapitalized; (iv) significantly undercapitalized; or (v) critically undercapitalized. A depository institution’s primary federal regulatory agency may determine that, based on certain qualitative assessments, the depository institution should be assigned to a lower capital category than the one indicated by its capital ratios. At each successive lower capital category, a depository institution is subject to greater operating restrictions and increased regulatory supervision by its federal bank regulatory agency.

The following tables set forth the capital and capital ratios of HomeStreet Inc. (on a consolidated basis) and HomeStreet Bank as of the dates indicated below, as compared to the respective regulatory requirements applicable to them:

At December 31, 2024ActualFor Minimum CapitalAdequacy PurposesTo Be Categorized As"Well Capitalized" (dollars in thousands)AmountRatioAmountRatioAmountRatioHomeStreet, Inc.Tier 1 leverage capital (to average assets)(1)$537,057 5.77 %$372,319 4.0 %NANACommon equity tier 1 capital (to risk-weighted assets)477,057 8.62 %249,109 4.5 %NANATier 1 risk-based capital (to risk-weighted assets)537,057 9.70 %332,145 6.0 %NANATotal risk-based capital (to risk-weighted assets)677,225 12.23 %442,860 8.0 %NANAHomeStreet BankTier 1 leverage capital (to average