Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 41

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 41
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 mortgage LHFS and MSRs, the Company utilizes derivatives as economic hedges. The notional amounts and fair values for derivatives, all of which are economic hedges are included in other assets or accounts payable and other liabilities on the consolidated balance sheet, consist of the following: At June 30, 2025Notional amountFair value derivatives(in thousands) AssetLiabilityForward sale commitments$149,516 $426 $(657)Interest rate lock commitments39,722 918 (2)Interest rate swaps204,450 6,583 (6,583)Total derivatives before netting$393,688 7,927 (7,242)Netting adjustment/Cash collateral (1)(6,932)230 Carrying value on consolidated balance sheet$995 $(7,012)At December 31, 2024Notional amountFair value derivatives(in thousands) AssetLiabilityForward sale commitments$87,912 $237 $(402)Interest rate lock commitments16,757 175 (49)Interest rate swaps222,917 10,250 (10,250)Futures5,200 1 — Options5,800 3 — Total derivatives before netting$338,586 10,666 (10,701)Netting adjustment/Cash collateral (1)(10,388)219 Carrying value on consolidated balance sheet$278 $(10,482)(1)    Includes net cash collateral received of $6.7 million and $10.2 million at June 30, 2025 and December 31, 2024, respectively. The following table presents gross fair value and net carrying value information for derivative instruments:(in thousands)Gross fair valueNetting adjustments/ Cash collateral (1)Carrying valueAt June 30, 2025Derivative assets$7,927 $(6,932)$995 Derivative liabilities(7,242)230 (7,012)At December 31, 2024Derivative assets$10,666 $(10,388)$278 Derivative liabilities(10,701)219 (10,482)(1)    Includes net cash collateral received of $6.7 million and $10.2 million at June 30, 2025 and December 31, 2024, respectively. 

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The collateral used under the Company's master netting agreements is typically cash,