Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 92

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 92
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 to develop, implement and maintain an effective system of internal control over financial reporting, then the accuracy and timing of Mechanics’ financial reporting in future periods may be adversely affected.**

Effective internal controls are necessary for Mechanics to provide timely and reliable financial reports and effectively prevent fraud. If Mechanics fails to maintain adequate internal controls, then Mechanics’ financial statements may not accurately reflect Mechanics’ financial condition. Any material misstatements could require a restatement of Mechanics’ consolidated financial statements or cause investors to lose confidence in Mechanics’ reported financial information.

**Mechanics may identify material weaknesses in its internal control over financial reporting in the future or fail to maintain an effective system of internal control over financial reporting, which may result in material misstatements of its financial statements.**

Mechanics has not identified any material weaknesses in its internal control over financial reporting as of December 31, 2024. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements would not be prevented or detected on a timely basis.

Such material weaknesses could result in the misstatement of a substantial part or substantially all of Mechanics’ accounts or disclosures, which would result in a material misstatement of Mechanics’ annual or interim financial statements that would not be prevented or detected.

To prevent such material weaknesses, Mechanics actively recruits accounting personnel with appropriate experience, certification, education and training. Mechanics is in the process of implementing additional measures and risk assessment procedures designed to improve Mechanics’ disclosure controls and procedures and internal control over financial reporting. Mechanics has engaged financial consultants to assist with the implementation of internal controls over financial reporting. To the extent that Mechanics is not able to hire and retain such individuals or is unable to successfully design and implement such controls, material weaknesses may not be prevented, identified or remediated and management may be required to record additional adjustments to its financial statements in the future or otherwise not be able to produce timely or accurate financial statements. Remediation efforts are generally time-consuming and require financial and operational resources. If Mechanics’ management concludes that Mechanics’ internal control over financial reporting is not effective, such a determination could adversely affect investor confidence in Mechanics.

**Mechanics ultimately may write off goodwill and other intangible assets resulting from business combinations.**

Goodwill is initially recorded at fair value and is not amortized but is reviewed at least annually or more frequently if events or changes in circumstances indicate that the carrying value may not be fully recoverable. If Mechanics’ estimates of goodwill