Company: MCHB
Filing Date: 2025-03-07
Form Type: 10-K
Source: 0001518715-25-000026
Chunk: 137

Company: Mechanics Bancorp
Filing Date: 2025-03-07
Form: 10-K
Item: Item 8
Chunk 137
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(29,478)(5,249)Deferred tax assets valuation allowance53,310 — Income tax expense (benefit)$23,832 $(5,249)

90

Income tax expense (benefit) differed from amounts computed at the federal income tax statutory rate as follows:  Years Ended December 31,20242023(in thousands, except rate)RateAmountRateAmountIncome (loss) before income taxes$(120,512)$(32,757)Federal tax statutory rate21.00 %(25,308)21.00 %(6,879)State tax - net of federal tax benefit3.63 %(4,380)4.12 %(1,351)Tax-exempt investments0.65 %(788)3.86 %(1,266)Low income housing tax benefits0.91 %(1,093)3.20 %(1,047)Stock-based compensation expense(0.55)%672 (1.28)%421 Goodwill— %— (14.13)%4,627 Other(1.18)%1,419 (0.75)%246 Total24.46 %(29,478)16.02 %(5,249)Change in valuation allowance53,310 — Total$23,832 $(5,249)The following is a summary of the Company's deferred tax assets and liabilities: At December 31,(in thousands)20242023Deferred tax assetsProvision for credit losses$10,220 $10,977 Unrealized loss on investments AFS28,343 28,571 LIHTC tax credits carryforwards5,667 — Net operating loss carryforwards26,736 370 Accrued liabilities2,241 1,917 Other investments786 463 Lease liabilities8,071 9,019 Nonaccrual interest1,695 1,112 Intangibles4,796 4,725 Stock based compensation849 782 Loan valuation240 274 Premises and equipment681 — Other457 401    Total90,782 58,611 Deferred tax liabilitiesMortgage servicing rights(22,805)(24,204)Deferred loan fees and costs(8,465)(8,967)Lease right-of-use assets(6,202)(6,906)Premises and equipment— (364)