Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 101

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 2
Chunk 101
---
Net2,086 2,143 Risk management, single family MSRs:Changes in fair value due to assumptions (2)4,373 271 Net gain (loss) from economic hedging (3)(118)1,016 Subtotal4,255 1,287 Single Family servicing income 6,341 3,430 Commercial loan servicing income:Servicing fees and other2,664 2,782 Amortization of capitalized MSRs(1,455)(1,354)Total1,209 1,428 Total loan servicing income $7,550 $4,858 

(1)Represents changes due to collection/realization of expected cash flows and curtailments.

(2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. 

(3)The interest income from US Treasury notes securities used for hedging purposes, which is included in interest income on the consolidated income statements, was $0.5 million and $0.4 million for the quarters ended June 30, 2025 and March 31, 2025, respectively.

Noninterest income in the second quarter of 2025 increased from the first quarter of 2025 primarily due to an increase in loan servicing income due to a $4.4 million increase in the value of our single family mortgage servicing rights resulting from higher market valuations of these assets.

49

Noninterest Expense consisted of the following:

 Quarter Ended(in thousands)June 30, 2025March 31, 2025Noninterest expenseCompensation and benefits$26,014 $26,309 Information services7,441 7,585 Occupancy4,868 4,871 General, administrative and other9,428 10,343 Total noninterest expense$47,751 $49,108 

Noninterest expenses were $1.4 million lower in the second quarter of 2025 due primarily to a $0.9 million decrease in general, administrative and other expenses which reflects the efforts made to eliminate or defer nonessential expenses. 

Six Months Ended of June 30, 2025 Compared to Six Months Ended of June 30, 2024

Non-core amounts: For the six months ended June 30, 2025, non-core items include $3.8 million of merger related expenses. During the six months ended June 30