Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 158

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 158
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 Quarter of 2024 Results of Operations General: Our net income and income before income taxes were $43.8 million and $61.5 million, respectively, in the first quarter of 2025, as compared to $51.7 million and $67.2 million in the fourth quarter of 2024, respectively, and a net loss before income taxes of $113.3 million and $157.4 million in the first quarter of 2024, respectively. The $5.7 million decrease in income before taxes compared to the fourth quarter of 2024 was primarily due to lower noninterest income and an increase in noninterest expense. The $218.9 million increase in income before taxes compared to the first quarter of 2024 was primarily due to higher net interest income, higher recovery of provision for credit losses, an increase in noninterest income and lower noninterest expense. The increase in noninterest income was primarily due to a loss on securities sales of $207.2 million in the first quarter of 2024 as a result of a balance sheet restructure. Income Taxes: Our effective tax rate during the first quarter of 2025 was 28.7% as compared to 23.1% in the fourth quarter of 2024 and 28.0% in the first quarter of 2024 and our federal statutory rate was 21.0%. Our effective tax rate was higher than the statutory federal rate in the first quarter of 2025 compared to the fourth quarter of 2024 as a result of state income taxes, partially offset by the benefits of tax-advantaged investments. Our effective tax rate was higher than the statutory federal rate in the first quarter of 2025 compared to the first quarter of 2024 as a result of state income taxes.

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Net Interest Income: The following tables set forth, for the periods indicated, information regarding (i) the total dollar amount of interest income from interest-earning assets and the resultant average yields on those assets; (ii) the total dollar amount of interest expense and the average rate of interest on our interest-bearing liabilities; (iii) net interest income; (iv) net interest rate spread; and (v) net interest margin:

|                                            |     |  Quarter Ended 
 March 31, 2025 |     |          |     |            |     | December 31, 2024 |     |          |     |            |     | March 31, 2024