Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 73

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 73
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 of noninterest income, consisted of the following: 

 Six Months Ended June 30,(in thousands)20252024Single family servicing income, netServicing fees and other$7,409 $7,590 Changes - amortization (1)(3,180)(3,141)Net4,229 4,449 Risk management, single family MSRs:Changes in fair value due to assumptions (2)4,644 1,147 Net gain (loss) from economic hedging (3)898 (1,619)Subtotal5,542 (472)Single Family servicing income 9,771 3,977 Commercial loan servicing income:Servicing fees and other5,446 5,326 Amortization of capitalized MSRs(2,809)(2,861)Total2,637 2,465 Total loan servicing income$12,408 $6,442 

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. 

(3)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.9 million and $0.6 million for the six months ended June 30, 2025 and 2024, respectively.

52

Noninterest Expense consisted of the following:

 Six Months Ended June 30,(in thousands)20252024Noninterest expenseCompensation and benefits$52,323 $55,627 Information services15,026 14,922 Occupancy9,739 10,564 General, administrative and other19,771 21,982 Total noninterest expense$96,859 $103,095 

The $6.2 million decrease in noninterest expense in the six months ended June 30, 2025 as compared to the six months ended June 30, 2024 was primarily due to $3.3 million lower compensation and benefit costs, $0.8 million lower occupancy costs and $2.2 million lower general and administrative costs. The decrease in compensation and benefit costs was primarily due to an 11% decrease in FTE and lower medical costs, which was partially offset by wage increases given in the first quarter of 2025. The decrease in occupancy