Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 91

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 91
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itions, net of adjustments (1) (284) (330) Realized losses (2) (165) (421) Balance, end of period $ 1,032 $ 1,481 (1) Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sold loans. (2) Includes principal losses and accrued interest on repurchased loans, "make-whole" settlements, settlements with claimants and certain related expenses. The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $1.6 million and $2.9 million were recorded in other assets as of December 31, 2024 and 2023, respectively. When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans as other assets and other liabilities. At December 31, 2024 and 2023, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $5.1 million and $5.6 million, respectively. The recognition of previously sold loans does not impact the accounting for the previously recognized MSRs. 73

Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following: Years Ended December 31, (in thousands) 2024 2023 Servicing income, net: Servicing fees and other $ 25,798 $ 26,134 Amortization of single family MSRs (1) (6,500) (6,378) Amortization of multifamily and SBA MSRs (5,612) (5,778) Total 13,686 13,978 Risk management, single family MSRs: Changes in fair value of MSRs due to assumptions (2) 1,743 414 Net gain (loss) from economic hedging (3) (2,932) (1,744) Total (1,189) (1,330) Loan servicing income $ 12,497 $ 12,648 (1) Represents changes due to collection/realization of expected cash flows and curtailments. (2) Principally reflects changes in model assumptions, including prepayment