Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 54

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 54
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Fall-out factor0.70%22.84%11.84%Value of servicing0.76%1.41%1.05%December 31, 2024Investment securities AFS$1,698 Income approachImplied spread to benchmark interest rate curve2.25%2.25%2.25%Single family LHFI1,287 Income approachImplied spread to benchmark interest rate curve2.94%5.56%3.69%Interest rate lock commitments, net126 Income approachFall-out factor0.83%29.13%9.28%Value of servicing0.78%2.15%1.37%We had no LHFS where the fair value was not derived with significant observable inputs at June 30, 2025 and December 31, 2024.

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The following table presents fair value changes and activity for certain Level 3 assets for the periods indicated: (in thousands)Beginning balanceAdditionsTransfersPayoffs/SalesChange in mark to market (1)Ending balanceQuarter Ended June 30, 2025Investment securities AFS$1,699 $— $— $(50)$18 $1,667 Single family LHFI1,248 — — (282)(7)959 Quarter Ended June 30, 2024Investment securities AFS$1,791 $— $— $(50)$28 $1,769 Single family LHFI1,285 — — — 1 1,286 Six Months Ended June 30, 2025Investment securities AFS$1,698 $— $— $(100)$69 $1,667 Single family LHFI1,287 — (50)(282)4 959 Six Months Ended June 30, 2024Investment securities AFS$1,860 $— $— $(100)$9 $1,769 Single family LHFI1,280 — — — 6 1,286 (1)   Changes in fair value for single LHFI are recorded in other noninterest income on the consolidated income statements. The following table presents fair value changes and activity for Level 3 interest rate lock commitments:Quarter Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Beginning balance, net$556 $336