Company: MCHB
Filing Date: 2025-04-15
Form Type: ARS
Source: 0001518715-25-000069
Chunk: 90

Company: Mechanics Bancorp
Filing Date: 2025-04-15
Form: ARS
Chunk 90
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 2023 Single family $ 404,952 $ 335,751 CRE, multifamily and SBA(1) 1,103,742 26,839 Total $ 1,508,694 $ 362,590 (1) 2024 amounts include the sale of $990 million of multifamily loans in the fourth quarter. Gain (loss) on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following: Years Ended December 31, (in thousands) 2024 2023 Single family $ 9,573 $ 8,500 CRE, multifamily and SBA(1) (86,463) 846 Total $ (76,890) $ 9,346 (1) 2024 amounts include loss of $88.8 million on the sale of $990 million of multifamily loans in the fourth quarter. 72

The Company's portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae, Freddie Mac and Ginnie Mae. The unpaid principal balance of loans serviced for others is as follows: At December 31, (in thousands) 2024 2023 Single family $ 5,179,373 $ 5,316,304 CRE, multifamily and SBA 1,918,172 1,900,039 Total $ 7,097,545 $ 7,216,343 Under the terms of the sales agreements for single family loans sold to GSEs and other entities, the Company has made representations and warranties that the loans sold meet certain requirements. The Company may be required to repurchase mortgage loans or indemnify loan purchasers due to defects in the origination process of the loan, such as documentation errors, underwriting errors and judgments, early payment defaults and fraud. The total unpaid principal balance of loans sold on a servicing-retained basis that were subject to the terms and conditions of these representations and warranties totaled $5.2 billion and $5.3 billion as of December 31, 2024 and 2023, respectively. The following is a summary of changes in the Company's mortgage repurchase liability for single family loans sold on a servicing-retained basis included in accounts payable and other liabilities on the consolidated balance sheet for the periods indicated: Years Ended December 31, (in thousands) 2024 2023 Balance, beginning of period $ 1,481 $ 2,232 Add