Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 169

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 169
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 securities. Borrowings may include advances from the FHLB, borrowings from the Federal Reserve, federal funds purchased and borrowing from other financial institutions. While scheduled principal repayments on loans and investment securities are a relatively predictable source of funds, deposit inflows and outflows and prepayments of loans and investment securities are greatly influenced by interest rates, economic conditions and competition. Mechanics’ contractual cash flow obligations include the maturity of certificates of deposit, short-term and long-term borrowings, interest on certificates of deposit and borrowings, operating leases and fees for information technology related services and professional services. Obligations for certificates of deposit are typically satisfied through excess cash reserve balances, the renewal of these instruments or the generation of new deposits. Interest payments and obligations related to leases and services are typically met by cash generated from our operations. At March 31, 2025, Mechanics had available borrowing capacity of $3.8 billion from the FHLB, $4.3 billion from the Federal Reserve Bank of San Francisco and $4.5 billion under borrowing lines established with other financial institutions. We believe that our current unrestricted cash and cash equivalents, cash flows from operations and borrowing capacity will be sufficient to meet our liquidity needs for at least the next 12 months. We are currently not aware of any other trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way that will impact our liquidity needs during or beyond the next 12 months. Cash Flows For the quarter ended March 31, 2025, cash and cash equivalents decreased by $201.4 million compared to an increase of $218.3 million during the quarter ended March 31, 2024. As a banking institution, Mechanics has extensive access to liquidity. As excess liquidity can reduce Mechanics’ earnings and returns, Mechanics manages its cash positions to minimize the level of excess liquidity and does not attempt to maximize the level of cash and cash equivalents. The following discussion highlights the major activities and transactions that affected our cash flows during these periods. Cash flows from operating activities Mechanics’ operating assets and liabilities are used to support our lending activities, including the origination and sale of mortgage loans. For the quarter ended March 31, 2025, net cash of $1.4 million was used in operating activities from ongoing bank operations. For the quarter ended March 31, 2024, net cash of $61.3 million was provided by operating activities primarily due to ongoing bank operations