Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 156

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 156
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 $476.2 million was provided by investing activities primarily from net loan originations and principal collections partially offset by AFS investment security purchases, net of maturities and sales. For 2023, cash of $1.7 billion was provided by investing activities primarily from net loan originations and principal collections and maturities of AFS securities. For 2022, cash of $258.1 million was provided by investing activities primarily from net loan originations and principal collections, and maturities and sales of AFS securities. Cash flows from financing activities Mechanics’ financing activities are primarily related to deposits, net proceeds from borrowings and equity transactions. For 2024, cash of $1.2 billion was used in financing activities primarily due to a net decrease in bank term funding, decreases in deposits and cash dividends paid. For 2023, cash of $813.4 million was used in financing activities primarily due to decreases in deposits, decreases in short-term FHLB borrowings and cash dividends paid, partially offset by a net increase in bank term funding. For 2022, cash of $1.2 billion was used in financing activities primarily due to a net decreases in deposits and cash dividends paid, partially offset by a net increase in short-term FHLB borrowings. Capital Resources and Dividends The capital rules applicable to United States based bank holding companies and federally insured depository institutions (“Capital Rules”) require Mechanics to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. In addition, prompt corrective action regulations place a federally insured depository institution, such as Mechanics, into one of five capital categories on the basis of its capital ratios: (i) well capitalized; (ii) adequately capitalized; (iii) undercapitalized; (iv) significantly undercapitalized; or (v) critically undercapitalized. A depository institution’s primary federal regulatory agency may determine that, based on certain qualitative assessments, the depository institution should be assigned to a lower capital category than the one indicated by its capital ratios. At each successive lower capital category, a depository institution is subject to greater operating restrictions and increased regulatory supervision by its federal bank regulatory agency. The following tables present the regulatory capital amounts and ratios (inclusive of capital 2.5% conservation buffer) for Mechanics as of the dates indicated:

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