Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 157

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 157
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366,208 |

Noninterest expense declined $12.9 million in 2024 compared to 2023 due to a decrease in salaries and employee benefits expense due to a 5.6% decrease in full time employees (“FTE”) and a decline in severance costs, as well as a decrease in loan related expenses due to a decline in the auto loan portfolio balances. These decreases were partially offset by an increase in FDIC assessments and regulatory fees due to FDIC special assessments and an increase in other noninterest expense due primarily to higher check fraud related losses. Noninterest expense declined $7.5 million in 2023 compared to 2022 due to a decrease in salaries and employee benefits expense due to a 14.4% decrease in FTE primarily as a result of closing Mechanics’ auto lending operations and a decrease in marketing and advertising due to a decline in promotional activities. These decreases were partially offset by an increase in FDIC assessments and regulatory fees. Financial Condition – December 31, 2024 Compared to December 31, 2023 During 2024, total assets decreased $1.0 billion due primarily to a decline in loans held for investment of $1.1 billion due to paydowns in Mechanics’ auto loan portfolio. Mechanics ceased originating auto loans in the first quarter of 2023. In 2024, total liabilities decreased $1.1 billion due to a $750 million decrease in borrowings and a $356.3 million decrease in deposits. The decrease in deposits was primarily due to a decrease in noninterest bearing deposits partially offset by increases in money market accounts. The $750 million decrease in borrowings during 2024 was primarily due to payoff of Mechanics’ Bank Term Funding Program advance from the Federal Reserve Bank of Dallas. Investment Securities Investment securities available for sale (“AFS”) and held to maturity (“HTM”) are as follows:

|                                                  |     | December 31, |     |            |     |               |     |            |     |            |     |               |
|                                                  |     |         2024 |     |            |     |               |     |       2023 |     |            |     |               |
| (in thousands)                                   |     |    Amortized 
         Cost |     | Fair Value |     | % Portfolio   
 at Fair Value |     |  Amortized 
       Cost |     | Fair Value |     | % Portfolio   
 at Fair Value |
| AFS Investment securities:                       |