Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 372

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 372
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 $70, $48 and $58 thousand, respectively, which are reported in Noninterest Income on the Consolidated Income Statements. The Bank’s customer related interest rate swaps provide an economic hedge but do not qualify for hedge accounting treatment. Fair value of interest rate swap contracts is reported within Interest Receivable and Other Assets and Interest Payable and Other Liabilities on the balance sheet. As of December 31, 2024 and 2023, the fair value of interest rate swap contracts within Interest Receivable and Other Assets were $12.8 million and $18.1 million and Interest Payable and Other Liabilities were $11.1 million and $15.2 million, respectively. The applicable Rabo counterparties deposited $12.8 million in cash collateral with the Bank to secure underlying derivative contracts as of December 31, 2024. Beginning in mid-2023, B&F Capital Markets, LLC (a Stifel Company) has provided the interest rate swap services to the Bank. As a part of its mortgage origination process, the Bank enters into contracts that qualify as derivatives, including forward sale commitments and interest rate lock commitments. It is the Bank’s practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in the interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The notional amount of mortgage commitments and fair value included in the Consolidated Balance Sheets at December 31, 2024 and 2023 can be seen in the following table:

|                                                     |     | As of December 31, 2024 |     |            |
|:----------------------------------------------------|:----|------------------------:|:----|-----------:|
| (in thousands)                                      |     |         Notional Amount |     | Fair Value |
| Included in Interest Receivable and Other assets:   |     |                         |     |            |
| Interest Rate Lock Commitments                      |     |                      $— |     |         $— |
| Forward Sale Commitments                            |     |                      $— |     |         $— |
| Included in Interest Payable and Other liabilities: |     |                         |     |            |
| Interest Rate Lock Commitments                      |     |                    $430 |     |         $7 |
| Forward Sale Commitments                            |     |                    $430 |     |         $— |

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