Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 97

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 97
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 funds, brokerage and investment banking firms, consumer finance companies, pension trusts, governmental organizations and increasingly fintech companies, each of which may offer more favorable financing than Mechanics is able to provide. In addition, some of Mechanics’ non-bank competitors are not subject to the same extensive regulations that govern Mechanics. The banking business in California has remained competitive over the past several years, and Mechanics expects the level of competition it faces to further increase. Competition for deposits and in providing lending products and services to consumers and businesses in Mechanics’ market area continues to be competitive and pricing is important.

Other factors encountered in competing for savings deposits are convenient office locations, interest rates and fee structures of products offered. Direct competition for savings deposits also comes from other commercial bank and thrift institutions, money market mutual funds and corporate and government securities that may offer more attractive

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rates than insured depository institutions are willing to pay. Competition for loans is based on factors such as interest rates, loan origination fees and the range of services offered by the provider. Mechanics’ profitability depends on Mechanics’ ability to compete effectively in these markets. This competition may reduce or limit Mechanics’ margins on banking services, reduce Mechanics’ market share and adversely affect its results of operations and financial condition. Mechanics’ mortgage origination business faces vigorous competition from banks and other financial institutions, including large financial institutions as well as independent mortgage banking companies, commercial banks, savings banks and savings and loan associations. The ability to attract and retain skilled mortgage origination professionals is critical to Mechanics’ mortgage origination business.

Overall, competition among providers of financial products and services continues to increase as technological advances, including the rise of artificial intelligence and automation, have lowered the barriers to entry for financial technology companies, with consumers having the opportunity to select from a growing variety of traditional and nontraditional alternatives, including online checking, savings and brokerage accounts, online lending, online insurance underwriters, crowdfunding, digital wallets, and money transfer services. The ability of non-banking financial institutions to provide services previously limited to commercial banks has intensified competition. Because non-banking financial institutions are not subject to many of the same regulatory restrictions as banks and bank holding companies, they can often operate with greater flexibility and lower cost structures. This competition could result in the loss of customer deposits and brokerage accounts and lower mortgage originations, which could have a material adverse effect on Mechanics’ financial condition and results of operations.

**Regulatory restrictions may delay, impede or prohibit Mechanics’ ability to