Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 62

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 62
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Topic 740): Improvements to Income Tax Disclosures, which expands disclosures in an entity’s income tax rate reconciliation table and taxes paid both in the U.S. and foreign jurisdictions. The update will be effective for annual periods beginning after December 15, 2024. The adoption of ASU 2023-09 will not have an impact on the Company's financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures. In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. The adoption of ASU 50

2024-03 will not have an impact on the Company's financial position or results of operation as it impacts disclosures only. We are assessing the impact on our disclosures. NOTE 2–INVESTMENT SECURITIES: The following tables set forth certain information regarding the amortized cost basis and fair values of our investment securities AFS and HTM: At December 31, 2024 (in thousands) Amortized cost Gross unrealized gains Gross unrealized losses Fair value AFS Mortgage-backed securities ("MBS"): Residential $ 174,887 $ 229 $ (7,654) $ 167,462 Commercial 54,620 — (6,978) 47,642 Collateralized mortgage obligations ("CMOs") Residential 349,348 36 (31,940) 317,444 Commercial 59,725 14 (4,794) 54,945 Municipal bonds 433,162 95 (54,998) 378,259 Corporate debt securities 31,136 — (6,192) 24,944 U.S