Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 389

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 389
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 from market rates movements, severity and duration of the unrealized loss position, viability of the issuer, recent downgrades in ratings, and external credit rating assessments. As a result, management expects to recover the entire amortized cost basis of these securities. Mortgage-Backed Securities -Residential and Commercial (MBS) - For the quarters presented, the unrealized losses on the Bank’s investments in residential and commercial MBS are primarily due to changes in interest rates. These securities are either implicitly or explicitly guaranteed by the U.S. government, as such management expects to recover the entire amortized cost basis of these securities. Collateralized Loan Obligations - For the quarters presented, there were no unrealized losses on the Bank’s collateralized loan obligations are primarily due to timing of the purchases. These securities are presented at par value. Corporate Bonds - For the quarters presented, the unrealized losses on the Bank’s investments in corporate bonds are due to slight discount margin variances related to changes in market rates and not due to credit losses. Management monitors these securities on an ongoing basis and performs an internal analysis which includes a review of credit quality, changes in ratings, assessment of regulatory and financial ratios, and general standing versus peer group. Management expects to recover the entire amortized cost basis of these securities. Securities with a gross carrying value of $1.46 billion at March 31, 2025 and $1.38 billion at December 31, 2024, were pledged to secure the Bank’s obligations for securities sold under agreements to repurchase and to collateralize certain public, trust and bankruptcy deposits as required by law. The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. As of March 31, 2025 there were no past due or nonaccrual available-for-sale or held-to-maturity securities. Contractual maturities of securities as of March 31, 2025 were as follows:

| (in thousands)                           |     |  Amortized 
       Cost |     |  Estimated 
 Fair Value |
| Securities available-for-sale            |     |            |     |            |
| Due in one year or less                  |     |     $8,085 |     |     $8,081 |
| Due after one year through five years