Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 23

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 23
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 June 30, 2025 and December 31, 2024, respectively, and was reported in other assets in the consolidated balance sheets.Activity in the ACL for LHFI and the allowance for unfunded commitments was as follows: Quarter Ended June 30,Six Months Ended June 30,(in thousands)2025202420252024Beginning balance$39,634 $39,677 $38,743 $40,500 Provision for credit losses6,1601287,048 370 Net (charge-offs) recoveries12 (64)15 (1,129)Ending balance$45,806 $39,741 $45,806 $39,741 Allowance for unfunded commitments:Beginning balance$1,258 $1,581 $1,146 $1,823 Provision for credit losses(160)(128)(48)(370)Ending balance$1,098 $1,453 $1,098 $1,453 Provision for credit losses:Allowance for credit losses - loans$6,160 $128 $7,048 $370 Allowance for unfunded commitments(160)(128)(48)(370)Total$6,000 $— $7,000 $— 

15

Activity in the ACL for LHFI by loan portfolio and loan sub-class was as follows:Quarter Ended June 30, 2025(in thousands)Beginning balanceCharge-offsRecoveriesProvision Ending balanceCRENon-owner occupied CRE$1,658 $— $— $133 $1,791 Multifamily13,287 — — 5,661 18,948 Construction/land developmentMultifamily construction468 — — 691 1,159 CRE construction73 — — (2)71 Single family construction5,704 — — (504)5,200 Single family construction to permanent140 — — 10 150 Total21,330 — — 5,989 27,319 Commercial and industrial loansOwner occupied CRE598 — — 12 610 Commercial business10,648 (20)25 497 11,150      Total 11,246 (20)25 509 11,760 Consumer loansSingle family3,702 — 1 (101)