Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 89

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 89
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10.2 million and $9.9 million at December 31, 2024 and 2023, respectively. The collateral used under the Company's master netting agreements is typically cash, but securities may be used under agreements with certain counterparties. Receivables related to cash collateral that has been paid to counterparties are included 71

in other assets. Payables related to cash collateral that has been received from counterparties are included in accounts payable and other liabilities. Interest is owed on amounts received from counterparties and we earn interest on cash paid to counterparties. Any securities pledged to counterparties as collateral remain on the consolidated balance sheets. At December 31, 2024 and 2023, the Company had liabilities of $10.4 million and $10.1 million, respectively, in cash collateral received from counterparties and receivables of $195 thousand and $218 thousand, respectively, in cash collateral paid to counterparties. The following table presents the net gain (loss) recognized on economic hedge derivatives, within the respective line items in the consolidated income statements for the periods indicated: Years Ended December 31, (in thousands) 2024 2023 Recognized in noninterest income: Net gain (loss) on loan origination and sale activities (1) $ 224 $ 804 Loan servicing income (loss) (2) (1,230) (1,255) Other (3) 3 (3) (1) Comprised of forward contracts used as an economic hedge of loans held for sale and interest rate lock commitments ("IRLCs") to customers. (2) Comprised of futures, US Treasury options and forward contracts used as economic hedges of single family MSRs. (3) Impact of interest rate swap agreements executed with commercial banking customers and broker dealer counterparties. The notional amount of open interest rate swap agreements executed with commercial banking customers and broker dealer counterparties at December 31, 2024 and 2023 were $223 million and $236 million, respectively. NOTE 9–MORTGAGE BANKING OPERATIONS: LHFS consisted of the following: At December 31, (in thousands) 2024 2023 Single family $ 20,312 $ 12,849 CRE, multifamily and SBA — 6,788 Total $ 20,312 $ 19,637 Loans sold consisted of the following for the periods indicated: Years Ended December 31, (in thousands) 2024