Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 365

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 365
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:|
| Land                                  |     |           $52,151 |     |           $52,571 |
| Buildings                             |     |            66,082 |     |            67,319 |
| Leasehold improvements                |     |            26,337 |     |            26,194 |
| Furniture, Fixtures and Equipment     |     |            38,263 |     |            43,446 |
| Total premises and equipment, at cost |     |           182,833 |     |           189,530 |
| Less: Accumulated depreciation        |     |           -65,471 |     |           -67,735 |
| Premises and Equipment, net           |     |          $117,362 |     |          $121,795 |

During the years ended December 31, 2024, 2023 and 2022, depreciation expense was $9.4 million, $10.7 million, and $11.0 million, respectively, and are presented within Noninterest Expense on the Consolidated Income Statements. NOTE 5 – LEASES The Bank leases certain premises. The Bank has entered into various operating leases for its branches and operating facilities. These operating leases expire at dates through 2034 and generally contain renewal options for periods of five to ten years. These leases include provisions for periodic rent increases as well as payment by the lessee of certain operating expenses. The Bank includes lease extension and termination options in the lease term if, after considering relevant economic factors, it is reasonably certain the Bank will exercise the option. In addition, the Bank has elected to account for any non-lease component in its real estate leases as part of the associated lease components. Leases are classified as operating or finance leases at lease commencement date. Lease expense for operating leases and short term leases is recognized over a straight line basis over the lease term. Right-of-use assets represent the right to use the underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Right of use assets and lease obligations are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

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TABLE OF CONTENTS

The Bank uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in the lease is not known. The Bank’s incremental borrowing rate is based on the FHLB advance rate, adjusted for the lease term and other factors. The Bank’s