Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 100

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 100
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 condition and results of operations. The application of more stringent capital requirements could, among other things, adversely affect Mechanics’ results of operations and growth, require the raising of additional capital, restrict Mechanics’ ability to pay dividends or repurchase shares and result in regulatory actions if Mechanics were to be unable to comply with such requirements.

**Federal and state regulators periodically examine Mechanics’ business, and Mechanics may be required to remediate adverse examination findings.**

The FDIC and the CDFPI periodically examine Mechanics’ business, including Mechanics’ compliance with laws and regulations. If, as a result of an examination, a regulatory agency were to determine that Mechanics’ financial condition, capital resources, asset quality, earnings prospects, management, liquidity or other aspects of any of Mechanics’ operations had become unsatisfactory, or that Mechanics was in violation of any law or regulation, they may take a number of different remedial actions as they deem appropriate. These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative action to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in Mechanics’ capital, to restrict Mechanics’ growth, to assess civil money penalties, to fine or remove officers and directors and, if it is concluded that such conditions cannot be corrected or there is an imminent risk of loss to depositors, to terminate Mechanics’ deposit insurance and place Mechanics into receivership or conservatorship. Any regulatory action against Mechanics could have a material adverse effect on Mechanics’ business, financial condition and results of operations.

**Mechanics faces a risk of noncompliance and enforcement action with the Bank Secrecy Act and other anti-money laundering statutes and regulations.**

The Bank Secrecy Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, and other laws and regulations require financial institutions to institute and maintain an effective anti-money laundering program and file suspicious activity and currency transaction reports. There is also increased scrutiny of compliance with the sanctions programs and rules administered and enforced by the Treasury Department’s Office of Foreign Assets Control.

To comply with laws and guidelines in this area, Mechanics has dedicated significant resources to its anti-money laundering program. If Mechanics’ policies, procedures and systems are deemed deficient, Mechanics could be

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required to dedicate additional resources to its anti-money laundering program and could be subject to liabilities, including fines