Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 103

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 103
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,611 34 (7,098)38,547 U.S. Treasury securities22,658 — (2,474)20,184 Agency debentures60,202 5 (1,302)58,905 Total$1,366,629 $834 $(116,264)$1,251,199 HTMMunicipal bonds$2,371 $— $(40)$2,331 At December 31, 2024 and 2023, the Company held $35 million and $25 million, respectively, of trading securities consisting of U.S. Treasury notes used as economic hedges of our single family mortgage servicing rights, which are carried at fair value and included with investment securities on the balance sheet. For 2024 and 2023, net losses of $1.7 million and $0.5 million on trading securities, respectively, were recorded in servicing income.MBS and CMOs represent securities issued or guaranteed by government sponsored enterprises ("GSEs"). Most of the MBS and CMO securities in our investment portfolio are guaranteed by Fannie Mae, Ginnie Mae or Freddie Mac. Municipal bonds are comprised of general obligation bonds (i.e., backed by the general credit of the issuer) and revenue bonds (i.e., backed by 

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either collateral or revenues from the specific project being financed) issued by various municipal organizations. As of December 31, 2024 and 2023, substantially all securities held, including municipal bonds and corporate debt securities, were rated investment grade based upon nationally recognized statistical rating organizations where available and, where not available, based upon internal ratings.Investment securities AFS that were in an unrealized loss position are presented in the following tables based on the length of time the individual securities have been in an unrealized loss position:At December 31, 2024 Less than 12 months12 months or moreTotal(in thousands)GrossunrealizedlossesFairvalueGrossunrealizedlossesFairvalueGrossunrealizedlossesFairvalueAFSMBS:Residential$(2)$532 $(7,652)$158,044 $(7,654)$158,576 Commercial— — (6,978)47,642 (6,978)47,642 CMOs:Residential(78)7,481 (31,862)293,297 (31,940)300,778 Commercial—