Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 156

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 156
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 for credit performance in the auto segment contributed to the reduction in provision. Specifically, actual losses outperformed modeled projections, prompting management to apply a more favorable scenario weighting for the auto portfolio in the ACL framework. The provision for credit losses in 2023 primarily relates to maintaining appropriate ACL levels for the auto loan portfolio, alongside the steady stream of net charge-offs that typically occur in the normal course of business within this portfolio. The provision for credit losses in 2022 primarily relates to growth in the auto portfolio as well as elevated credit risks following the post-pandemic environment necessitating heightened provisions. Noninterest income (loss) consisted of the following:

| (in thousands)                            |     | Year Ended December 31, 
                    2024 |     |    2023 |     |    2022 |
|:------------------------------------------|:----|------------------------:|:----|--------:|:----|--------:|
| Noninterest income (loss)                 |     |                         |     |         |     |         |
| Service charges on deposit accounts       |     |                 $23,650 |     | $24,955 |     | $25,791 |
| Trust fees and commissions                |     |                  12,319 |     |   9,644 |     |   9,710 |
| ATM network fee income                    |     |                  12,158 |     |  12,192 |     |  12,286 |
| Loan servicing income                     |     |                     968 |     |   1,671 |     |   2,827 |
| Net loss on sale of investment securities |     |                -207,203 |     |       — |     | -11,230 |
| Income from bank-owned life insurance     |     |                   2,600 |     |   8,990 |     |   2,226 |
| Other                                     |     |                  16,388 |     |  16,775 |     |  22,123 |
| Total noninterest income (loss)           |     |              $(139,120) |     | $74,227 |     | $63,733 |

Noninterest income in 2024 decreased from 2023 primarily due to the $207.2 million loss on the sale of lower yielding AFS investment securities as part of a balance sheet restructure, partially offset by an increase in trust fees. The increase in trust fees primarily relates to