Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 110

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 110
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 — — (323)576 Commercial business2,950 (2,963)522 6,377 6,886 Total3,849 (2,963)522 6,054 7,462 Consumer loansSingle family5,287 — 7 (1,684)3,610 Home equity and other3,452 (178)178 (265)3,187 Total8,739 (178)185 (1,949)6,797 Total ACL$40,500 $(3,141)$707 $677 $38,743 

69

Year Ended December 31, 2023(in thousands)Beginning balanceCharge-offsRecoveriesProvisionEndingbalanceCRENon-owner occupied CRE$2,102 $— $— $508 $2,610 Multifamily10,974 — — 2,119 13,093 Construction/land developmentMultifamily construction998 — — 2,985 3,983 CRE construction196 — — (7)189 Single family construction12,418 — — (5,053)7,365 Single family construction to permanent1,171 — — (499)672 Total27,859 — — 53 27,912 Commercial and industrial loansOwner occupied CRE1,030 — — (131)899 Commercial business3,247 (1,062)87 678 2,950 Total4,277 (1,062)87 547 3,849 Consumer loansSingle family5,610 — 23 (346)5,287 Home equity and other3,754 (319)338 (321)3,452 Total9,364 (319)361 (667)8,739 Total ACL$41,500 $(1,381)$448 $(67)$40,500 Credit Quality IndicatorsManagement regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification and grading in accordance with applicable bank regulations. The Company's risk rating methodology assigns risk ratings ranging from 1 to 10, where a higher rating represents higher risk. The risk rating of 9 is not used.Per the Company's policies, most commercial loans pools are non-homogenous and are regularly assessed for credit quality.