Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 132

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 132
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 assets and other liabilities. At December 31, 2024 and 2023, delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets totaled $5.1 million and $5.6 million, respectively. The recognition of previously sold loans does not impact the accounting for the previously recognized MSRs.

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Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:  Years Ended December 31,(in thousands)20242023Servicing income, net:Servicing fees and other$25,798 $26,134 Amortization of single family MSRs (1)(6,500)(6,378)Amortization of multifamily and SBA MSRs(5,612)(5,778)Total13,686 13,978 Risk management, single family MSRs:Changes in fair value of MSRs due to assumptions (2)1,743 414 Net gain (loss) from economic hedging (3)(2,932)(1,744)Total(1,189)(1,330)Loan servicing income $12,497 $12,648 (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 reflected 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 $1.2 million and $1.4 million in 2024 and 2023, respectively.The Company determines fair value of single family MSRs using a valuation model that calculates the net present value of estimated future cash flows. Estimates of future cash flows include contractual servicing fees, ancillary income and costs of servicing, the timing of which are impacted by assumptions, primarily expected prepayment speeds and discount rates, which relate to the underlying performance of the loans. The changes in single family MSRs measured at fair value are as follows:  Years Ended December 31,(in thousands)20242023Beginning balance$74,249 $76,617 Additions and amortization:Originations3,409 3,136 Purchases— 460 Amortization (1)(6,500)(6,378)Net additions and amortization(3,091)(2,782)Changes in