Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 71

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 71
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810,725 14,896 1.64 %Certificates of deposit2,817,292 58,406 4.18 %3,046,659 70,892 4.68 %Total 4,760,601 72,751 3.08 %5,177,460 86,142 3.34 %Borrowings:Borrowings1,021,258 23,076 4.49 %2,049,971 49,462 4.79 %Long-term debt225,224 5,889 5.22 %224,858 6,208 5.50 %Total interest-bearing liabilities6,007,083 101,716 3.40 %7,452,289 141,812 3.81 %Noninterest-bearing liabilities:Demand deposits (2)1,259,586 1,300,878 Other liabilities86,139 103,727 Total liabilities7,352,808 8,856,894 Shareholders' equity404,211 530,266 Total liabilities and shareholders' equity$7,757,019 $9,387,160 Net interest income $69,116 $64,009 Net interest spread1.22 %0.76 %Net interest margin1.86 %1.40 %

(1)   Includes taxable-equivalent adjustments primarily related to tax-exempt income on certain loans and securities of $2.0 million and $2.2 million for the six months ended June 30, 2025 and 2024, respectively. The estimated federal statutory tax rate was 21% for the periods presented.

(2)   Cost of deposits including noninterest-bearing deposits, was 2.43% and 2.67% for the six months ended June 30, 2025 and 2024, respectively.

Net interest income in the six months ended June 30, 2025 increased $5.2 million as compared to the six months ended June 30, 2024 due primarily to an increase in net interest margin from 1.40% in the six months ended June 30, 2024 to 1.86% in the six months ended June 30, 2025. The increase in net interest margin is due to a 41 basis point decrease in the rates paid on interest-bearing liabilities and a 6