Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 81

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 81
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 in the vendor’s possession about Mechanics’ employees and customers. Affected individuals were notified by the applicable vendors. Given the widespread use of such secure file transfer program, additional vendors of Mechanics may have been impacted. Mechanics has incurred, and may continue to incur, expenses related to this incident, and it remains subject to risks and uncertainties as a result of the incident, including litigation and additional regulatory scrutiny. The continued occurrence of cybersecurity incidents and threats thereof across a range of industries has resulted in increased legislative and regulatory scrutiny over cybersecurity and calls for additional data privacy laws and regulations at both the state and federal levels. For example, in 2018, the State of California adopted the California Consumer Privacy Act of 2018, as amended by the California Privacy Rights Act in 2023, which imposes requirements on companies operating in California and provides consumers with a private right of action if covered companies suffer a data breach related to their failure to implement reasonable security measures. There have been ongoing discussions and proposals in the U.S. Congress with respect to new federal data privacy and security laws to which Mechanics would become subject if enacted. These upcoming and evolving laws and regulations could result in increased operating expenses or increase Mechanics’ exposure to the risk of litigation or regulatory inquiries or proceedings. Although Mechanics devotes significant resources to maintain and regularly upgrade its systems and networks to safeguard critical business applications, there is no guarantee that these measures or any other measures can provide absolute security. Mechanics’ computer systems, software and networks may be adversely affected by cyber incidents such as: unauthorized access; loss or destruction of data (including confidential client information); account takeovers; unavailability of service; computer viruses or other malicious code; cyberattacks; and other events. In addition, Mechanics’ protective measures may not promptly detect intrusions, and Mechanics may experience losses or incur costs or other damage related to intrusions that go undetected or go undetected for significant periods of time, at levels that adversely affect Mechanics’ financial results or reputation. Further, because the methods used to cause cyberattacks change frequently, or in some cases cannot be recognized until launched, Mechanics may be unable to implement preventative measures or proactively address these methods until they are discovered. Cyber threats have derived or may derive from human error, fraud or malice on the part of employees or third parties, or may result from accidental technological failure. Additional challenges are posed by external extremist parties, including foreign state actors, in some circumstances, as a means to promote political ends. If one or more of these events occurs, then it