Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 147

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 147
---
 31, 2023(in thousands)CarryingValueFairValueLevel 1Level 2Level 3Assets:Cash and cash equivalents$215,664 $215,664 $215,664 $— $— Investment securities HTM2,371 2,331 — 2,331 — LHFI7,381,124 7,002,028 — — 7,002,028 LHFS multifamily and other6,788 6,871 — 6,871 — Mortgage servicing rights – multifamily and SBA29,987 35,292 — — 35,292 Federal Home Loan Bank stock55,293 55,293 — 55,293 — Other assets - GNMA EBO loans5,617 5,617 — — 5,617 Liabilities:Certificates of deposit$3,227,954 $3,216,665 $— $3,216,665 $— Borrowings1,745,000 1,750,023 — 1,750,023 — Long-term debt224,766 132,996 — 132,996 — Fair Value OptionSingle family loans held for sale accounted for under the fair value option are measured initially at fair value with subsequent changes in fair value recognized in earnings. Gains and losses from such changes in fair value are recognized in net gain on mortgage loan origination and sale activities within noninterest income. The change in fair value of loans held for sale is primarily driven by changes in interest rates subsequent to loan funding and changes in fair value of the related servicing asset, resulting in revaluations adjustments to the recorded fair value. The use of the fair value option allows the change in the fair 

98

value of loans to more effectively offset the change in fair value of derivative instruments that are used as economic hedges of loans held for sale.The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of loans held for sale accounted for under the fair value option:At December 31, 2024At December 31, 2023(in thousands)Fair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal BalanceFair ValueAggregate Unpaid Principal BalanceFair Value Less Aggregate Unpaid Principal BalanceSingle family LHFS$20,312 $20,137 $175