Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 163

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 163
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 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, excluding the impact of the $207.2 million loss on sale of securities.

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Cash flows from investing activities Mechanics’ investing activities are primarily related to investment securities and LHFI. For the quarter ended March 31, 2025, net cash of $244.4 million was used in investing activities primarily from AFS investment security purchases, partially offset by net loan originations and principal collections. For the quarter ended March 31, 2024, net cash of $357.2 million was provided by investing activities primarily from the sale of AFS investment securities and net loan originations and principal collections, partially offset by AFS investment security purchases. Cash