Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 361

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 361
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 Allowance for loan and lease losses     |     |              |     |             |     |             |     |         |     |             |     |          |
| Beginning balance                       |     |       $7,794 |     |     $62,460 |     |     $12,132 |     | $49,415 |     |      $4,033 |     | $135,834 |
| Provision for (reversal of) loan losses |     |          735 |     |     -11,649 |     |       3,620 |     |  28,553 |     |       4,173 |     |   25,432 |
| Loans charged off                       |     |            — |     |           — |     |          -1 |     | -45,319 |     |      -4,466 |     |  -49,786 |
| Recoveries                              |     |          166 |     |           — |     |           — |     |  14,047 |     |       1,023 |     |   15,236 |
| Total ending allowance balance          |     |       $8,695 |     |     $50,811 |     |     $15,751 |     | $46,696 |     |      $4,763 |     | $126,716 |

| (1) | The allowance for loan and lease losses was calculated under an incurred loss methodology prior to January 1, 2023. |

F-23

TABLE OF CONTENTS

Changes in the allowance for credit losses for the years ended December 31, 2024, 2023 and 2022:

| (in thousands)                                                                                              |     |   Year Ended 
 December 31, 
         2024 |     |   Year Ended 
 December 31, 
         2023 |     |   Year Ended 
 December 31, 
         2022 |
|:------------------------------------------------------------------------------------------------------------|:----|-------------:|:----|-------------:|:----|-------------:|
| Allowance for credit losses on loans and leases at the beginning of the year                                |     |     $133,778 |     |     $126,716 |     |     $135,834 |
| Impact of adopting ASC 326                                                                                  |     |            — |     |       59,131 |     |            — |
| Provision for (reversal of) credit losses on loans