Company: MCHB
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001518715-25-000110
Chunk: 64

Company: Mechanics Bancorp
Filing Date: 2025-08-06
Form: 10-Q
Item: Item 8
Chunk 64
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 0.93 %0.88 %Nonperforming assets to total assets0.76 %0.71 %Nonperforming assets $58,052 $57,814 Regulatory Capital Ratios: BankTier 1 leverage 8.74 %7.30 %Total risk-based capital13.66 %13.02 %Common equity Tier 1 capital12.76 %12.27 %CompanyTier 1 leverage 6.78 %5.77 %Total risk-based capital12.65 %12.23 %Common equity Tier 1 capital8.78 %8.62 %

(1)Tangible book value per share and tangible common equity to tangible assets are non-GAAP financial measures. For a reconciliation of these measures to the nearest comparable GAAP financial measure, see “Non-GAAP Financial Measures” elsewhere in this Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(2)Total past due and nonaccrual loans as a percentage of total loans held for investment.

(3)    This ratio excludes balances insured by the FHA or guaranteed by the VA or SBA.

46

Current Developments

Recent Developments

On March 28, 2025, the Company entered into a definitive Agreement and Plan of Merger with Mechanics Bank, whereby, subject to regulatory and certain shareholder approvals the Bank will merge with and into Mechanics Bank as a subsidiary of the Company (the “Merger”). The Company will amend its articles of incorporation to issue shares to the Mechanics shareholders in exchange for 100% of Mechanics stock such that when the Merger closes the Mechanics shareholders will own approximately 91.7% of the combined company and HomeStreet shareholders will own approximately 8.3% of the combined company. Upon the closing of the Merger the Company’s name will change to Mechanics Bancorp. The Merger is expected to close in the third quarter of 2025, subject to regulatory approval.

On July 16, 2025, the Company entered into an agreement to sell its Government National Mortgage Association (“Ginnie Mae”) mortgage servicing portfolio to an entity experienced in servicing loans, including Ginnie Mae loans. The principal balance of the loans in the Ginnie Mae servicing portfolio sold under the purchase agreement was $797 million and the value of the related mortgage servicing rights was $15.7 million on June 30, 2025. The sale closed on August 1, 202