Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 107

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 107
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 other purposes as permitted or required by law. At December 31,(in thousands)20242023Federal Reserve Bank to secure existing or potential borrowings$906,475 $647,104 Washington, Oregon and California State to secure public deposits195,212 10,654 Other securities pledged1,334 1,440 Total securities pledged as collateral$1,103,021 $659,198 The Company assesses the creditworthiness of the counterparties that hold the pledged collateral and has determined that these arrangements have minimal credit risk. Tax-exempt interest income on investment securities was $11.1 million and $11.3 million for 2024 and 2023, respectively.

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NOTE 3-LOANS AND CREDIT QUALITY:

The Company's LHFI is divided into two portfolio segments, commercial loans and consumer loans. Within each portfolio segment, the Company monitors and assesses credit risk based on the risk characteristics of each of the following loan classes: non-owner occupied commercial real estate ("CRE"), multifamily, construction and land development, owner occupied CRE and commercial business loans within the commercial loan portfolio segment and single family and home equity and other loans within the consumer loan portfolio segment. LHFI consists of the following:At December 31,(in thousands)20242023CRENon-owner occupied CRE$570,750 $641,885 Multifamily2,992,675 3,940,189 Construction/land development472,740 565,916 Total4,036,165 5,147,990 Commercial and industrial loansOwner occupied CRE361,997 391,285 Commercial business312,004 359,049 Total 674,001 750,334 Consumer loansSingle family 1,109,095 1,140,279 Home equity and other412,535 384,301 Total (1)1,521,630 1,524,580                   Total LHFI6,231,796 7,422,904 ACL(38,743)(40,500)Total LHFI less ACL$6,193,053 $7,382,404 (1)    Includes $1.3 million at December 31, 2024 and 2023, of loans where a fair value option election was made at the time of origination and, therefore, are carried at fair value with changes recognized in the consolidated income statements. Loans totaling $4.