Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 90

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 90
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 manage the available-for-sale investment securities portfolio while maintaining a balance between risk and return. The Company's funding strategy is to grow core deposits while we efficiently supplement using wholesale borrowings.

We estimate the sensitivity of our net interest income to changes in market interest rates using an interest rate simulation model that includes assumptions related to the level of balance sheet growth, deposit repricing characteristics and the rate of prepayments for multiple interest rate change scenarios. Interest rate sensitivity depends on certain repricing characteristics in our interest-earnings assets and interest-bearing liabilities, including the maturity structure of assets and liabilities and their repricing characteristics during the periods of changes in market interest rates. Effective interest rate risk management seeks to ensure both assets and liabilities respond to changes in interest rates within an acceptable timeframe, minimizing the impact of interest rate changes on net interest income and capital. Interest rate sensitivity is measured as the difference between the volume of assets and liabilities, at a point in time, that are subject to repricing at various time horizons, known as interest rate sensitivity gaps.

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The following table presents sensitivity gaps for these different intervals:

 At March 31, 2025(in thousands)3 Mos.or LessMore Than3 Mos.to 6 Mos.More Than6 Mos.to 12 Mos.More Than12 Mos.to 3 Yrs.More Than3 Yrs.to 5 Yrs.More Than5 to 15 Yrs.More Than15 Yrs.Non-Rate-SensitiveTotalInterest-earning assets:Cash & cash equivalents$252,162 $— $— $— $— $— $— $— $252,162 FHLB Stock$45,047 — — — — — 4,873 — 49,920 Investment securities (1)173,529 86,937 29,729 105,151 160,634 481,289 18,049 — 1,055,318  LHFS34,734 — — — — — — — 34,734 LHFI (1)1,304,541 389,786 583,830 1,685,376 1,297,590 736,877 65,216 — 6,063,216 Total 1,810,013 476,723 613,559 1,790,527