Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 88

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 88
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 which could adversely affect Mechanics’ results of operations and financial condition.

**Mechanics’ mortgage origination business is subject to fluctuations based upon seasonal and other factors.**

Mechanics’ mortgage origination business is subject to several variables that can impact loan origination volume, including seasonal and interest rate fluctuations. An increase in the general level of interest rates may, among other things, adversely affect the demand for mortgage loans and Mechanics’ ability to originate mortgage loans. In particular, if mortgage interest rates increase, the demand for residential mortgage loans and the refinancing of residential mortgage loans will likely decrease, which will have an adverse effect on Mechanics’ mortgage origination activities. Conversely, a decrease in the general level of interest rates, among other things, may lead to increased competition for mortgage loan origination business.

**The financial services industry is characterized by rapid technological change, and if Mechanics fails to keep pace, its business may suffer.**

The financial services industry is continually undergoing rapid technological change with frequent introductions of new technology-driven products and services, including increased usage of artificial intelligence and automation. Many of Mechanics’ competitors have substantially greater resources to invest in technological improvements. Mechanics may not be able to effectively or timely implement new technology-driven products and services or be successful in marketing these products and services to its customers and clients. Failure to successfully keep pace with technological change affecting the financial services industry and avoid interruptions, errors and delays could have a material adverse impact on Mechanics’ business, financial condition, results of operations or cash flows.

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**Mechanics is heavily reliant on technology, and a failure to effectively implement new technological solutions or enhancements to existing systems or platforms could adversely affect Mechanics’ business operations and the financial results of Mechanics’ operations.**

Mechanics significantly depends on technology to deliver its products and services and to otherwise conduct business. To remain technologically competitive and operationally efficient, Mechanics has either begun the significant investment in or has plans to invest in new technological solutions, substantial core system upgrades and other technology enhancements. Many of these solutions and enhancements have a significant duration, include phased implementation schedules, are tied to critical systems, and require substantial internal and external resources for design and implementation. Such external resources may be relied upon to provide expertise and support to help implement, maintain and/or service certain of Mechanics’ core technology solutions.

Although Mechanics takes steps to mitigate the risks and uncertainties associated with these solutions and initiatives, it may encounter significant adverse developments in the completion and implementation of these