Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 166

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 166
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2,003 |
| Marketing and advertising       |     |            584 |     |               666 |     |            734 |
| Other real estate owned related |     |          2,684 |     |               617 |     |            304 |
| Other                           |     |          6,534 |     |             7,349 |     |          6,290 |
| Total noninterest expense       |     |        $85,638 |     |           $84,449 |     |        $88,232 |

Noninterest expense increased $1.2 million in the first quarter of 2025 as compared to the fourth quarter of 2024 primarily due to increases in salaries and employee benefits expense and other real estate-owned related expense, partially offset by a decrease in FDIC assessments and regulatory fees. Salaries and employee benefits expense in the first quarter of 2025 was higher as incentive compensation costs and employee health insurance costs were lower in the fourth quarter of 2024. Other real estate owned related expense increased due to a write-down of other real estate owned of $2.2 million in the first quarter of 2025, which also contributed to the increase in noninterest expense compared to the fourth quarter of 2024. FDIC assessments and regulatory fees in the first quarter of 2025 were lower since the fourth quarter of 2024 included accruals related to FDIC special assessments. Noninterest expense declined $2.6 million in the first quarter of 2025 as compared to the first quarter of 2024 due to a decrease in salaries and employee benefits expense as a result of a 3.5% decrease in FTEs, as well as a decrease in amortization of intangible assets, partially offset by an increase in other real estate-owned related expense related to the write-down of other real estate owned in the first quarter of 2025. Financial Condition - March 31, 2025 Compared to December 31, 2024 In the first quarter of 2025, total assets increased $50.2 million primarily due to a $521.1 million increase in available-for-sale investment securities due to purchases, partially offset by a $227.5 million decrease in loans held for investment due to loan repayments and a $201.4 million decrease in cash and cash equivalents from investment purchases, net of loan repayments. In the first quarter of 2025, total liabilities decreased $22.0 million due to a $