Company: MCHB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001518715-25-000083
Chunk: 58

Company: Mechanics Bancorp
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 8
Chunk 58
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Collateralized mortgage obligations:Residential317,444 — 317,444 — Commercial54,945 — 54,945 — Municipal bonds378,259 — 378,259 — Corporate debt securities24,944 — 24,944 — U.S. Treasury securities19,987 — 19,987 — Agency debentures9,276 — 9,276 — Single family LHFS 20,312 — 20,312 — Single family LHFI1,287 — — 1,287 Single family mortgage servicing rights72,901 — — 72,901 DerivativesFutures1 1 — — Forward sale commitments237 — 237 — Options3 3 — Interest rate lock commitments175 — — 175 Interest rate swaps10,250 — 10,250 — Total assets$1,159,871 $34,750 $1,049,060 $76,061 Liabilities:DerivativesForward sale commitments$402 $— $402 $— Interest rate lock commitments49 — — 49 Interest rate swaps10,250 — 10,250 — Total liabilities$10,701 $— $10,652 $49 There were no transfers between levels of the fair value hierarchy during the quarters ended March 31, 2025 and 2024. Level 3 Recurring Fair Value MeasurementsThe Company's Level 3 recurring fair value measurements consist of investment securities AFS, single family MSRs, single family LHFI where fair value option was elected, certain single family LHFS and interest rate lock commitments, which are accounted for as derivatives. For information regarding fair value changes and activity for single family MSRs during the quarters ended March 31, 2025 and 2024, see Note 6, Mortgage Banking Operations of this Quarterly Report on Form 10-Q.The fair value of IRLCs considers several factors, including the fair value in the secondary market of the underlying loan resulting from the exercise of the commitment, the expected net future cash flows related to the associated servicing of the loan (referred to as the value of servicing) and the probability that the commitment will not be converted into a funded loan (referred to as a fall-out factor). The fair value