Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 395

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 395
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 customers and offsetting swap agreements as of March 31,2025 and December 31, 2024 were $716.3 million and $759.4 million, respectively. The net revenue on customer swaps for the quarters ending March 31, 2025 and March 31, 2024 were $54.0 thousand and $6.2 thousand, respectively, which are reported in Noninterest Income on the Consolidated Income Statements. The Bank’s customer related interest rate swaps provide an economic hedge but do not qualify for hedge accounting treatment. Fair value of interest rate swap contracts is reported within Interest Receivable and Other Assets and Interest Payable and Other Liabilities on the balance sheet. As of March 31, 2025 and December 31, 2024, the fair value of interest rate swap contracts within Interest Receivable and Other Assets were $9.4 million and $12.8 million and Interest Payable and Other Liabilities were $7.9 million and $11.1 million, respectively. The applicable Rabo counterparties deposited $9.5 million in cash collateral with the Bank to secure underlying derivative contracts as of March 31, 2025. Beginning in mid-2023, B&F Capital Markets, LLC (a Stifel Company) has provided the interest rate swap services to the Bank. As a part of its mortgage origination process, the Bank enters into contracts that qualify as derivatives, including forward sale commitments and interest rate lock commitments. It is the Bank’s practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into to economically hedge the effect of changes in the interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. The notional amount of mortgage commitments and fair value included in the Consolidated Balance Sheets at March 31,2025 and December 31, 2024 can be seen in the following table:

|                                                     |     | As of March 31, 2025 |     |            |
|:----------------------------------------------------|:----|---------------------:|:----|-----------:|
| (in thousands)                                      |     |      Notional Amount |     | Fair Value |
| Included in Interest Receivable and Other assets:   |     |                      |     |            |
| Interest Rate Lock Commitments                      |     |                   $— |     |         $— |
| Forward Sale Commitments                            |     |                   $— |