Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 170

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 170
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, excluding the impact of the $207.2 million loss on sale of securities.

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TABLE OF CONTENTS

Cash flows from investing activities Mechanics’ investing activities are primarily related to investment securities and LHFI. For the quarter ended March 31, 2025, net cash of $244.4 million was used in investing activities primarily from AFS investment security purchases, partially offset by net loan originations and principal collections. For the quarter ended March 31, 2024, net cash of $357.2 million was provided by investing activities primarily from the sale of AFS investment securities and net loan originations and principal collections, partially offset by AFS investment security purchases. Cash flows from financing activities Mechanics’ financing activities are primarily related to deposits, net proceeds from borrowings and equity transactions. For the quarter ended March 31, 2025, net cash of $44.4 million was provided by financing activities, due to an increase in deposits. For the quarter ended March 31, 2024, net cash of $200.1 million was used in financing activities, primarily due to a decrease in deposits and cash dividends paid. Capital Resources and Dividends The Capital Rules require Mechanics to meet specific capital adequacy requirements that, for the most part, involve quantitative measures, primarily in terms of the ratios of their capital to their assets, liabilities, and certain off-balance sheet items, calculated under regulatory accounting practices. In addition, prompt corrective action regulations place a federally insured depository institution, such as Mechanics, into one of five capital categories on the basis of its capital ratios: (i) well capitalized; (ii) adequately capitalized; (iii) undercapitalized; (iv) significantly undercapitalized; or (v) critically undercapitalized. A depository institution’s primary federal regulatory agency may determine that, based on certain qualitative assessments, the depository institution should be assigned to a lower capital category than the one indicated by its capital ratios. At each successive lower capital category, a depository institution is subject to greater operating restrictions and increased regulatory supervision by its federal bank regulatory agency. The following tables present the regulatory capital amounts and ratios (inclusive of capital 2.5% conservation buffer) for Mechanics as of the dates indicated:

|                                                        |     | March 31, 2025 |     |        |     |                     |     |       |     |                      |     |       |
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