Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 153

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 153
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 |     |              9.66% |     |      9.32% |
| Common equity Tier 1 capital     |     |             16.14% |     |     14.83% |
| Tier 1 risk-based capital        |     |             16.14% |     |     14.83% |
| Total risk-based capital         |     |             17.14% |     |     16.17% |

| (1) | Return on average tangible equity, efficiency ratio, tangible book value per share, and tangible common equity ratio are non-GAAP financial measures. For a reconciliation of these measures to the comparable GAAP financial measure or the computation of the measure, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations-Non-GAAP Financial Measures and Reconciliations”. |

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TABLE OF CONTENTS

Management’s Overview of Financial Performance – 2024, 2023 and 2022 Results of Operations General: Our net income and income before income taxes were $29.0 million and $35.7 million, respectively, in 2024, as compared to $201.9 million and $277.9 million, respectively, in 2023. The $242.2 million decrease in income before taxes was primarily due to lower net interest income of $44.0 million and lower noninterest income of $213.3 million, partially offset by a decrease in noninterest expense of $12.9 million. Net interest income decreased primarily due to higher interest expense on interest bearing deposits primarily attributable to higher rates and average balances, offset by higher yields on investment securities. Noninterest income decreased due to a loss on securities sales of $207.2 million as a result of a balance sheet restructure. Noninterest expense decreased primarily due to lower salaries and benefits expenses. Our net income and income before income taxes were $201.9 million and $277.9 million, respectively, in 2023, as compared to $216.6 million and $302.1 million, respectively, in 2022. The $24.2 million decrease in income before taxes was primarily due to lower net interest income of $68.0 million, partially offset by a lower provision for credit losses on loans and leases of $22.9 million, an increase in noninterest income of $10.5 million and a decrease in noninterest expense of $7.5 million. Income Taxes: Our effective tax rate during