Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 129

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 129
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790 411 — Interest rate swaps235,521 10,489 (10,492)Futures12,200 — (3)Options9,300 132 — Total derivatives before netting$366,320 11,183 (10,783)Netting adjustment/Cash collateral (1)(10,119)195 Carrying value on consolidated balance sheet $1,064 $(10,588)(1)    Includes net cash collateral received of $10.2 million and $9.9 million at December 31, 2024 and 2023, respectively. The Company nets derivative assets and liabilities when a legally enforceable master netting agreement exists between the Company and the derivative counterparty. Derivatives are reported at their respective fair values in the other assets or accounts payable and other liabilities line items on the consolidated balance sheets, with changes in fair value reflected in current period earnings.The following tables present gross fair value and net carrying value information for derivative instruments:(in thousands)Gross fair valueNetting adjustments/Cash collateral (1)Carrying valueAt December 31, 2024Derivative assets$10,666 $(10,388)$278 Derivative liabilities(10,701)219 (10,482)At December 31, 2023Derivative assets $11,183 $(10,119)$1,064 Derivative liabilities (10,783)195 (10,588)(1)    Includes net cash collateral received of $10.2 million and $9.9 million at December 31, 2024 and 2023, respectively.

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The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties are included in other assets. Payables related to cash collateral that has been received from counterparties are included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At December 31, 2024 and 2023, the Company had liabilities of $10.4 million and $10.1 million, respectively, in cash collateral received from counterparties and receivables of $195 thousand and $218 thousand, respectively, in cash collateral paid to counterparties.The following table